Details

Title: CHAP 14 ECON 2020

Description: Final Exam Flashcards

Total Flash Cards: 14

Created: 05/04/2009 18:15:23

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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.