Perfect Competition, Imperfectly Competitive Markets And Monopoly Flashcards
1
Q
Artificial barrier to entry
A
Barriers to market entry that are man-made
2
Q
Collusion
A
Illegal cooperation between multiple firms e.g. cartel
3
Q
Concentrated market
A
A market with very few firms
4
Q
Concentration ratio
A
The total market shares of the leading firms in the market
5
Q
Entry barriers
A
Make it more difficult for firms to enter a market
6
Q
Exit barrier
A
Make it more difficult for a firm to exit the market
7
Q
Imperfect competition
A
Any market structure between the extremes of perfect competition and a pure monopoly
8
Q
Innovation
A
Improving upon an existing product or process
9
Q
Invention
A
Creation of a new product or process
10
Q
Limit pricing
A
Lowering the price of a good or service to around average cost, creating an artificial barrier to entry
