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Economics Vocabulary Chapter 7

Terms

undefined, object
copy deck
the philosophy that governemnt should not interfere with commerce or trade
laissez-faire
the nature and degree of competition among firms operating in the same industry
market structure
characterized by a large number of well-informed independent buyers and sellers who exchange identical products
perfect competition
market structure that lacks one or more of the condition of perfect competition
imperfect competition
market structure that has all the conditions of perfect competition except for indentical products
monopolistic competition
real or imagined differences between competing products in the same industry
product differentiation
use of advertising, giveaways, or other promotional campaigns to convince buyers that the product is somehow better than another brand
nonprice competition
market structure in which a few very large sellers dominate the industry
oligopoly
formal agreement to set prices or to otherwise behave in a cooperative manner
collusion
agreeing to charge the same or similar prices for a product
price-fixing
market structure with only one seller of a particular product
monopoly
market situation where the costs of production are minimized by having a single firm product the product
natural monopoly
situation in which the average cost of production falls as the firm gets larger
eonomies of scale
monopoly based on the absence of other sellers in a certain geographic area
geographic monopoly
monopoly that is based on ownership or control of a manufacturing method, process, or other scientific advance
technological monopoly
monopoly the government owns and operates
government monopoly
market where any of the requirements for a competitive market are lacking
market failure
unintended side effect that either benefits or harms a third party not involved in the activity that caused it
externality
the harm, cost, r inconvenience suffered by a third party because of actions by others
negative externality
benefit received by someone who had nothing to do with the activity that generated the benefit
positive externality
products that are collectively consumed by everyone, and whose use by one individual does not diminish the satisfaction or value available to others
public goods
the practice of charging customers different prices for the same product
price discrimination
an FTC ruling requiring a company to stop an unfair business practice, such as price-fixing, that reduces or limits competitin among firms
cease and desist order
the requirement that businesses reveal information to the public
public disclosure
legally formed combinations of corporations or companies
trusts

Deck Info

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