Chapter 7 & 8 Corrections Flashcards
what is market structure
a model that allows for economists to examine businesses in the same industry
What are the five conditions for perfect conditions
- numerous buyers and sellers
- standardized product
- Freedom to enter and exit markets
- Independent buyers and sellers
- well-informed buyers and sellers
what is a price maker?
a monopolies ability to control a price to its whim
what is a natural monopoly?
When the situation in the market is such that it is more efficient to have one producer make one product
What is a technological monopoly?
when a monopoly owns the technology of a product or the manufacturing of it
What is the economies of scale
the idea that as the producer becomes larger, they are able to make the product more cheaply
what is monopolistic competition
many sellers offer similar, yet not standardized products. Different sellers sell T Shirts, yet they are not the same
what is predatory pricing?
When a business sets prices well below cost in order to drive competitors out of business
what is a cease and desist order?
a ruling the forces a firm to cease an unfair business tactic
What is public disclosure?
A business must give information on their product
Name three ways in which a monopoly differs from perfect competition
- Only one seller
- Control of prices
- Restricted, Regulated Market
What is a business organization?
an enterprise that produces goods
What is general partnership?
each partner is responsible for all business debts and losses
What is limited partnership?
A partnership where each partner is not involved in the day to day running of business
What is limited liability?
All partners are not responsible for the debts and liabilities of other partners
