Reading...
Play button
Play button
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;
13 Cards in this Set
- Front
- Back
|
government intervention to alter market structure or prevent abuse of market power
|
antitrust
|
|
|
government intervention to alter the behavior of firms, for example, pricing , output, or advertising.
|
regulation
|
|
|
an industry in which one firm can achieve economies of scale over the entire range of market supply
|
natural monopoly
|
|
|
the distinctive characteristic of a natural monopoly is what?
|
downward sloping atc curve
|
|
|
reductions in minimum average costs that come about through increases in the size (scale) of plant and equipment
|
economies of scale
|
|
|
the offer of goods at prices equal to their marginal cost.
|
marginal cost pricing
|
|
|
the difference between total revenues and total economic costs
|
economic profit
|
|
|
government intervention that fails to improve economic outcomes
|
government failure
|
|
|
features that make one product appear different from competing products in the same market
|
product differentiation
|
|
|
use of high prices and profits on one product to subsidize low prices on another product
|
cross subsidization
|
|
|
an imperfectly competitive industry subject to potential entry if prices or profits increase
|
contestable market
|
|
|
a good or service whose consumption by one person does not exclude consumption by others
|
public good
|
|
|
refers to markets in which individual suppliers have some independent influence on the price at which their output is sold.
|
imperfect competition
|
