Chapter 9 Flashcards Preview

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Flashcards in Chapter 9 Deck (22):
1

Situation occurring when the majority of members of the boards of directors of competing corporation are the same.

Interlocking directorate

2

Federal regulation and control over business of formerly heavily-regulated industries

Reregulation

3

A market that has so many sellers that each one accounts for a small part of total sales.

Perfect competition

4

Exist when any individual or group buys or sells a good or service in amounts large enough to affect price.

Imperfect competition

5

Arrangement among group of business, usually international, to reduce competition by controlling price, production, and the distribution of

Cartel

6

Gradual reduction of government regulation and control over business activity.

Deregulation

7

Buy-out of a company by one in the same business

Horizontal merger

8

Manufacturers' use of minor differences in quality and features to try to distinguish among similar goods and services

Product differentiation

9

Market in which a large number of sellers offer similar, but slightly different products.

Monopolistic competition.

10

Market situations resulting when one firm forces it's competitors out of business by producing at the lowest cost.

Natural monopoly

11

Market situation in which there is one seller of a good or service.

Pure monopoly

12

Merger in which business that is buying or selling to another business merges with that business.

Vertical merger

13

An industry in which a few suppliers that exercise some control over price dominate.

Oligopoly

14

Right granted by the government to exclusively manufacture an invention for a specified number of years.

Patent

15

Laws passed by federal and state governments to prevent new monopolies form forming and to break up those that already exist.

Antitrust legislation

16

Situation occurring when a corporation buys more than half the stock of another corporation

Merger

17

Buying out of unrelated business.

Conglomerate merger

18

Obstacles to competition that prevent others from entering a market

Barriers to entry

19

Market situation resulting when a sellers develops a product or production process for which it obtains a patent.

Technological monopoly

20

Market situations created by the government and protected by legal barriers to entry

Government monopolies

21

Market situations occurring when an individual seller has control over a market because if location

Geographic monopoly

22

Large corporation made up of smaller corporations dealing in unrelated industries.

Conglomerate