Econ Chapter 6 Vocab

Front 1

perfect competition

Back 1

also called pure competition. an ideal market structure in which buyers, and sellers each compete directly and fully under the laws of supply and demand.

Front 2

buyers

Back 2

consumers

Front 3

sellers

Back 3

producers

Front 4

monopoly

Back 4

one seller controls all production of a good or service

Front 5

monopolistic competition

Back 5

a market in which many producers offer a similar- but not identical- good or service

Front 6

differentiate

Back 6

point out differences

Front 7

product differentiation

Back 7

an attempt by a seller in monopolistic competition to convince buyers hat its product is different from and superior to the nearly identical products of competitors

Front 8

nonprice competition

Back 8

when sellers compete on a basis other than price

Front 9

oligopoly

Back 9

a market structure in which a few large sellers control most of the production of a good or service

Front 10

interdependent pricing

Back 10

when sellers are very responsive to -or dependent on-the pricing actions of their competitors.

Front 11

price leadership

Back 11

most common form of interdependent pricing. One of the largest sellers in the market takes the lead by setting a price for its product.

Front 12

price war

Back 12

sellers aggressively undercut each other's prices in an attempt to gain market share

Front 13

collusion

Back 13

when sellers secretly agree to set production levels or prices for their products

Front 14

cartel

Back 14

companies openly organize a system of price setting and market sharing

Front 15

natural monopolies

Back 15

a single large seller that produces a good or service most efficiently

Front 16

economies of scale

Back 16

the sellers large scale, or size, allows it to use its human, capital and other resources more efficiently and economically than if those resources were divided among several smaller producers

Front 17

geographic monopolies

Back 17

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Front 18

technological monopolies

Back 18

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Front 19

patent

Back 19

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Front 20

copyrights

Back 20

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Front 21

government monopoly

Back 21

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Front 22

trusts

Back 22

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Front 23

laissez-faire

Back 23

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Front 24

antitrust legislation

Back 24

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Front 25

price discrimination

Back 25

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