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Vocabulary
Economic vocab.....
10
Economics
12th Grade
11/18/2010

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Term
Homogenous product
Definition
Products are the same or similar; easily subsituted.
Term
Heterogeneous product
Definition
Differentiated product; real or perceived differences exists (Color, style, quality)
Term
Unique Product
Definition
One of a kind; No close subsitute exists.
Term
Barriers to entry
Definition
Factors that inhibit the entry or exit of firms into or out of an industry: geography, high advertising costs, high cost of capital outlay, etc.
Term
Price-Taker
Definition
A firm that accepts the market price determined by supply and demand.
Term
Price leadership
Definition
Action taken by an industry leader to rise the price; other large firms follow suit.
Term
Price setter
Definition
A firm that has control over of the price of a product it sells; no competition.
Term
Non-price competition.
Definition
Firms compete on the basis of factors other than price; style, quality, special. May be percieved differences communicated via advertising.
Term
Pure competition.
Definition
Has many firms, creates homogeneous product. Like Agriculture-based firms.
Term
Monopoly
Definition
Has only one firm; unique products; Very hard to set-up. Public Utilty type.
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