Flashcards in Chapter 9 - Terms Deck (24):
Arrangements people have developed for trading with one another
A family of common concerns, a group of businesses that sells a similar product, sells to a certain group of customers, or produces its products in a similar way
Products that are different from one firm to another.
Products that are exactly alike from firm to firm.
A condition that prevents a new firm from entering an industry and competing on an equal basis with established firms
Barrier to entry
The situation in which new firms are prevented from entering an industry because other firms already own all a vital natural resource necessary for the business
Natural barriers to entry
The prevention of a new firm from entering an industry because of governmental regulations
Artificial barriers to entry
The condition of a market when there is a very large number of sellers who are selling an identical product, each seller and buyer is perfectly aware of all information about the market, no seller can affect the price, and sellers find it relatively easy to enter and to exit the market.
The condition of a market in which there are many sellers of slightly differentiated goods, sellers, and buyers are reasonably aware of conditions that may affect the market, each seller has some control over his good’s price, and sellers find it relatively easy to enter and exit the market.
A market in which only a handful of firms are selling either highly differentiated or undifferentiated products, sellers and buyers are not fully aware of all market information, each seller has a great deal of control over the price, and sellers find it relatively difficult to enter and exit the industry.
The selling of the same goods or services by a business firm to different buyers at different prices.
An oligopoly in which the top four firms account for at least 75 percent of the market sales.
An oligopoly in which the top four firms account for 50–75 percent of the industry’s total sales.
An oligopoly composed of two business firms.
Agreement among a small number of producers to reduce their output and increase prices.
A group of producers who cooperate to control the price of their goods.
A form of market organization in which there is only one supplier in the industry selling an undifferentiated product.
Monopoly that exists because one firm owns or controls 100 percent of some resource vital to the industry
A monopoly in which the government allows one firm an exclusive right to provide a good or service.
The head of the largest company in the industry would persuade the other firms to put their stock into a trust account
A situation that reduces competition in an industry by placing one or more directors on the boards of competing firms.
Contracts forced upon smaller companies by a supplier to give exclusive rights to the supplier and thus reduce competition.
A situation in which business firms buy out other firms in their industry to eliminate or reduce competition