Chpt. 7 Vocab Flashcards Preview

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Flashcards in Chpt. 7 Vocab Deck (12)
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Q

Perfect Competition

A

A market structure with many fully informed buyers and sellers of an identical product with no barriers to entry

1
Q

Market Structure

A

Important features of a market such as the number of buyers and sellers, product uniformity across sellers, ease of entering the market, and forms of competition.

2
Q

Commodity

A

a product that is identical across sellers, such as a bushel of wheat

3
Q

Monopoly

A

A sole supplier of a product with no close substitutes

4
Q

Barriers to Entry

A

Anything that prevents new firms from competing on an equal footing with existing firms in an industry

5
Q

Market Power

A

The ability of a firm to raise its price without losing all it’s customers to rivals

6
Q

Monopolistic Competition

A

A market structure with no entry barriers and many firms selling products differentiated enough that each firm’s demand curve slopes downward

7
Q

Oligopoly

A

A market structure with a small number of firms whose behavior is interdependent

8
Q

Cartel

A

A group of firms that agree to coordinate and pricing decisions to maximize group profits by behaving as a monopolists

9
Q

Antitrust Activity

A

Government efforts aimed at preventing monopoly and promoting competition in markets where competition is desirable

10
Q

Merger

A

The combination of two or more firms to form a single firm

11
Q

Deregulation

A

A reduction in govt control over prices and firm entry in previously related markets, such as airlines and trucking