Ch 7 Vocab Flashcards
The nature and degree of competition among firms operating in the same industry.
Market Structure
The struggle among producers for the dollars of consumers.
Competition
A market structure characterized by an extremely large number of sellers, none strong enough to significantly influence price or supply.
Pure Competition
A market structure in which a large number of firms all produce the same product.
Perfect Competition
A market structure in which many companies sell products that are similar but not identical.
Monopolistic Competition
Real or imagined differences between competing products in the same industry.
Product Differentiation
A market structure in which a few large firms dominate a market.
Oligopoly
An agreement among firms to charge one price for the same good.
Price Fixing
A market dominated by a single seller.
Monopoly
An agreement among firms to divide the market, set prices, or limit production.
Collusion
A market that runs most efficiently when on large firm supplies all of the output.
Natural Monopoly
Market Structure in which a firm has a monopoly because of its location or the small size of the market.
Geographic Moonpoly
Market Structure in which a firm has a monopoly because it owns or controls a manufacturing method, process, or other scientific advantage.
Technological Monopoly
A monopoly created by the government.
Government Monopoly
A way to attract customers through style, service, or location, but not a lower price.
Nonprice Competition
