Shared Flashcard Set

Details

Perfect competition
also called pure competition, is an ideal market structure in which buyers, sellers, each compete directly and fully under the laws of supply and demand.
25
Economics
12th Grade
03/27/2012

Additional Economics Flashcards

 


 

Cards

Term
Perfect competiton
Definition
also called pure competition, is an ideal market structure in which buyers,sellers, each compete directly and fully under the laws of supply and demand.
Term
buyers
Definition
consumers
Term
Sellers
Definition
producers
Term
Monopoly
Definition
this type of single- firm market is the basis for the market structure
Term
monopolistic competition
Definition
differs from perfect competition in one key respect sellers offer different, rather than identical, products
Term
differentiate
Definition
point out differences, between their products and those of their competitors
Term
product differentiation
Definition
an attempt by a seller in monopolistic competition to convince buyers that its product is different from and superior to the nearly identical products of competitors
Term
nonprice competition
Definition

they compete on a basis other than price.

Ex. designer jeans that $75 and "no-name" jeans cost $25 are basically the same product.

Term
oligopoly
Definition
the most common noncompetitive market in the United States.
Term
interdependent pricing
Definition
by being very responsive to or dependent on the pricing actions of their competition.
Term
price leadership
Definition
in which one of the largest sellers in the market takes the lead by setting a price for its product.
Term
price war
Definition
in which sellers aggressively undercut each other's prices in an attempt to gain market share.
Term
collusion
Definition
when sellers secretly agree to set production levels or prices for their products is illegal and carries heavy penalties such as fines and even prison sentences for those involved.
Term
cartel
Definition
which companies openly organize a system of price setting and market sharing.
Term
natural monopolies
Definition
feature a single large seller that produces a good or service most efficiently.
Term
economies of scale
Definition
the seller's large scale, or size, allows its to use its human, capital, and other resources more efficiently and economically than if those resources were divided amoung several smaller producers.
Term
geographic monopolies
Definition

a general store in a remote community.

ex. has a geographic monopoly on groceries and many common household items.

Term
technological monopolies
Definition
some monopolies when a producer develops new technology that enables the creation of a new product or that changes the way an existing product is made.
Term
patent
Definition
grants a company or an individual the exclusive right to produce, use, rent, and sell an invention or discovery for a limited time
Term
copyrights
Definition
the U.S. gov't give authors, musicians, and artists exclusive right to publish, duplicate, perform, display, and sell their creative works.
Term
Gov't monopoly
Definition
any market in which a gov't is the sole seller of a product.
Term
trusts
Definition
the result was an era of "big business" as huge monopolies
Term
laissez- faire
Definition
this philosophy states that economic systems prosper when the gov't doesnt interfere with the market in any way
Term
price discrimination
Definition
the practice of offering different prices to different customers under the same circumstances
Term
antitrust legislation
Definition
these acts were designed to monitor and regulate big business, prevent monopolies from forming, and dismantle existing monopolies
Supporting users have an ad free experience!