Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key


Play button


Play button




Click to flip

20 Cards in this Set

  • Front
  • Back
what is pure price competition?
pure price competition involves many buyers and sellers, none of whom can individually influence the market price.
what does pure price competition require?
pure price competition requires
1)many buyers/sellers
2)identical goods/services
3) free entry
what are price takers
they are essentially a part of pure price competition since they take the price that is determined by the market and decide how much to produce at that price
what is monopolistic ocmpetition
describes a market with many sellers selling similar but not identical products allowing them to raise/lower their price as they wish.
what is differentiation
emphasizing the distinctive features of goods/services
what is an oligopoly
it is a market dominated by a few large firms and they are price searchers
what are price searchers
they seek the best combination of price and production quantity. this also makes these few companies dependent on one each other since if one lowers their price all must follow or lose out
A collusion is considered a incentive for oligopolies to restrict price competition. what is collusion exactly
it is an agreement in which companies reduce production to raise prices and profits
what are characteristics of a pure monopoly (1 seller)
1)no close substitutes
2) a single seller
3)barriers to entry
4)natural monopolies (public utiliites, transportation)
what is a patent
a legal right to use a product/idea for 17 years exclusively
what is a copyright
it is the exclusive right of the authors of original writing and artistic work to sell or in any way reproduce their works for their lifetime plus 50 yrs
what is a trademark?
it is a special design, name, or symbol that identifies a product, service or company
what is a monopsony
a market in which there is only one buyer
what is a merger
when one business buys another. the firm is either dissolved or becomes a part of the firm it was bought by
what is a horizontal merger
the combination of two or more companies engaged in the same business
what is a vertical merger?
two or more companies that combine which are involved in different steps of a production process
what is a conglomerate merger
combines two or more unrelated businesses under single management.
what is a joint venture?
companies get together to work on a project while maintaining their independence
what is marketing
marketing involves everything that takes place between production and the purchase of a product
what are the four P's of marketing
1) product
3) promotion