Economics 8 Flashcards
Arrangement amoung groups of business usally international to reduce competition by controlling price production and distribution of goods
Cartel
A market that has so many sellers that each one accounts for a small part of the total sales
Perfect competition
Exists when any individual or group buys or sells a good or service in amounts large enough to affect price
Imperfect competition
Gradual reduction of government regulation and control over business activity
Deregulation
Buy out of a company by one in the same business
Horizontal merger
Manufacturers use of minor differences in quality and features to try to distinguish amoung similar goods and services
Product differentiation
Market in which a large number of sellers offer similar but slightly different products
Monopolistic competition
Market situations resulting when one firm forces it’s competitors out of business by producing at the lowest cost
Natural monopoly
Market situation which there is one seller of a good or service
Monoply
Merger in which a business that is buying or selling to another business merges with that business
Vertical merger
An industry in which a few suppliers that exercise some control over price dominate
Oligopoly
Right granted by the government to exclusively manufacture an invention for a specified number of years
Patent
Laws passed by federal and state governments to prevent new monopolies form forming and to break up those that already exist
Antitrust legislation
Situation occurring when a corporation buys more than half the stock of another corporation
Merger
Buying out of unrelated businesses
Conglomerate merger
Obstacles to competition that prevents others from entering a market
Barriers to entry
Market situation resulting when a seller develps a product or production process for which it obtains a patent
Technological monopoly
Market situation created by the government and protected by legal barriers to entry
Government monopolies
Market situation occurring when an individual seller has control over a market because of location
Geographic monopoly
Large corporation made up of smaller corporations dealing in unrelated industries
Conglomerate
Situation occurring when the majority of members of the board of directors of completion corporation are the same
Interlocking directorate
Federal regulation and control over business of formerly heavily regulated industries
Reregulation
