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27 Cards in this Set
- Front
- Back
Laissez fair
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philosophy that government should not interfere with commerce or trade "allow them to do"
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Industry
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the supply side of the market or all producers collectively
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Market structure
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the nature and degree of competition among firms operating in the same industry
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Perfect competition
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Large number of well informed independant buyers and sellers who exchange identicle products.
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maximun profit
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marginal cost = marginal revenue
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imperfect competition
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name given to market structure that lacks one or more conditions in a market with perfect competition.
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Monopolistic Competition
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Has all the conditions for perfect exept identical products.
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Product differentiation
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real or imagined differences between campeteing products in the same industry
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Non price competition
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use of advertising giveaways or other promotional campaigns to convince buyers that the products are somehow better than another ( oftgen takes the place of price competition)
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Oligopoly
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where a few large sellers dominate the industry, where one firms acts others usually follow
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Collusion
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a formal agreement to set prices or to other wise behave in a coroporative manner
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price fixing
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agreeing to change the same or similar prices for a product. (these prices are high than those under competition)
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Monopoly
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market structure with only one seller of a particular product, americans try to outlaw them.
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Natural Monopoly
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costs of production are minimized by having a single firm produce the product.
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economies of sale
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where the average cost of production falls as the firm gets larger.
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geographical monopoly
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a monopoly based on the absence of sellers in a geographic area
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technological monopoly
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a monopoly formed based on the ownership or control of a manufacturing method, process or other scientific advance.
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patent
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an exclusive right to manufacture ,use or sell any new and useful innovation for a specific time.
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government monopoly
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a monopoly the government owns and operates.
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market failure
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can occur when a condition is altered , that makes a free market.
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government monopoly
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a monopoly the government owns and operates.
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externality
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positive or negative unintended side effect. that affects a third party not involved
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public goods
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are products that are collectively consumed by everyone-market does not supply them
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trusts
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legally formed combination of corporations or companies
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price discrimination
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the practice of charging different people different amounts for the same product.
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cease and desist order
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an FTC ruling requiring a company to stop an unfair business practice.
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Public disclosure
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requirement that business reveal information to the public.
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