Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
33 Cards in this Set
- Front
- Back
|
Market Structure |
An economic model of competition among businesses in the same industry |
|
|
Perfect Competition |
The ideal model of a market economy |
|
|
Standardized Product |
One that consumers sees as identical regardless of producer |
|
|
Characteristics Of A Perfect Competition |
•Numerous Buyers and Sellers •Standardized Product •Freedom to Enter and Exit Markets •Independent Buyers and Sellers •Well-Informed Buyers and Sellers |
|
|
Price Taker |
A business that accepts the market price determined by supply and demand |
|
|
Imperfect Competition |
Occurs in markets that have few sellers or products that are not standardized |
|
|
Monopoly |
Occurs when there is only one seller of a product that has no close substitutes |
|
|
Cartel |
The group that acts together to set prices and limit output |
|
|
Price Market |
Firm that does not have to consider competitions when set in the prices of its products |
|
|
Barrier to Entry |
Makes it hard for new businesses to enter a market |
|
|
Natural Monopoly |
Occurs when the cost of production are lowest with only one producer |
|
|
Government Monopoly |
Exist when the government either owns and runs a business's or authorized only one producer |
|
|
Technological Monopoly |
Occurs when a firm controls a manufacturing method, inventions, or type of technology |
|
|
Geographic Monopoly |
Exist when there are no other producers with in a certain region |
|
|
Economics of Scale |
Occurs when the average cost of production falls as a producer grows larger |
|
|
Patent |
Give an inventor the exclusive property rights to that invention or process for a certain number of years |
|
|
Monopolistic Competition |
Occurs when many sellers offer similar, but not standardized products |
|
|
Product Differentiation |
Is the effort to distinguish a product from similar products |
|
|
Nonprice Competition |
Occurs when producers use factors other than low price to try to convince customers to buy their product |
|
|
Focus Group |
A moderate discussion with small groups of consumers |
|
|
Oligopoly |
A market structure in which only a few sellers offer a similar product |
|
|
Market Share |
A company's percent of total sales in a market |
|
|
Start-Up Cost |
Are the expenses that a new business faces when it enters a market |
|
|
Four Majory Characteristics of An Oligoly |
•Game Sellers and Many Buyers •Standardized or Differentiated Products •More Control of Prices •Little Freedom to Enter and Exit Market |
|
|
Regulation |
A set of rules or laws designed to control business Behavior |
|
|
Antitrust Legislation |
Define monopolies and give government the power to control them |
|
|
Trust |
A group or firm combined in order to reduce competition in an industry |
|
|
Merger |
The joining of two firms to form a single firm |
|
|
Price Fixing |
Occur from businesses agree to set prices for competing products |
|
|
Market Allocation |
Currently in the competing businesses divide a market amongst themselves |
|
|
Predatory Prices |
Occurs when businesses at prices below cost for a time to drive competitors out of the market |
|
|
Cease and Desist Order |
Requires a firm to stop an unfair business practice |
|
|
Public Disclosure |
A policy that requires businesses to reveal product information |
