B5 Flashcards
what is a trough?
economic low point unused capacity and unwillingness to risk new investments
what happens during a recession?
potential output exceeds actual output
pure competition
maintains market share and responds to competition
if demand is elastic, how will price changes affect quantity?
quantity demanded will increase more than price reductions.
explain tender offer
contact shareholders to buy shares at a premium and gain controlling interest. Think paying more as tender
horizontal merger
compainies in the same industry
vertical merger
merge with one of its own suppliers
circular combination
two unrelated industries
dumping
foreign price is lesss than domestic price and/or the production cost
business cycle order
expansion, peak, contraction, trough
if US exchange rates decline, what does that mean?
us currency is depreciating, so foreiners can buy more us goods, and the us should export their goods to sell more
monopolistic competition
low barriers to entry
differntiation
many indeoendent firms
pure competition
alll products are same, no diffentiation
