Details Title: CHAP 14 ECON 2020 Description: Final Exam Flashcards Total Flash Cards: 14 Created: 05/04/2009 18:15:23		New Users: To study from this flashcard set, or to create your own your own study flash cards, REGISTER HERE. Existing Users: CLICK HERE. Additional Economics Flashcards
Cards in this set: Term Monopoly Definition A firm that is the only seller of a good or service that does not have a close substitute. Term Copyright Definition A government-granted exclusive right to produce and sell a creation. Term Public Franchise Definition A designation by the government that a firm is the only legal provider of a good or service. Term Network Externalities Definition The situation where the usefulness of a product increases with the number of consumers who use it. Term Natural Monopoly Definition A situation in which economies of scale are so large that one firm can supply the entire market at a lower average total cost than two or more firms. Term Market Power Definition The ability of a firm to charge a price greater than marginal cost. Term Antitrust Laws Definition Laws aimed at eliminating collusion and promoting competition among firms. Term Sherman Act (1890) Definition Prohibited price fixing and collusion. Term Clayton Act (1914) Definition Prohibited firms from buying stock in competitors and from having directors serve on the boards of competing firms. Term Federal Trade Commission Act (1914) Definition Established the FTC to enforce antitrust laws. Term Robinson-Patman Act (1936) Definition Prohibits charging buyers different prices if the result would reduce competition. Term Cellar-Kefauver Act (1950) Definition Toughened regulations on mergers by prohibiting any that would reduce competition. Term Horizontal Merger Definition A merger between firms in the same industry. Term Vertical Merger Definition A merger between firms at different stages of production of a good.