Economics Chapter 9 Flashcards
Businesses that try to control a large portion of the market
Cartel
A market that has so many sellers they all make up a portion of total sales
Perfect competition
Buy-out of a company in the same business
Horizontal merger
Market with large number of sellers but slightly different products
Monopolistic competition
Any individual group or buyer sells so much of one thing to affect price
Imperfect competition
Reduction of government regulation and control over businesses
Deregulation
Differences in products to try and make one stand out to costumers
Product differentiation
When one firm forces it’s competitors out of business
Natural monopoly
One seller for a good
Monopoly
Few suppliers, some control over price
Oligopoly
Laws passed by government to prevent monopolies
Anti-trust legislation
Buying out of unrelated businesses
Conglomerate merger
Merge that is between a company and a product they use
Vertical merger
Government granted right to make an invention for a certain number of years
Patent
When a company buys half the stock of another company
Merger
Obstacles to competition to prevent others from entering the market
Barriers to entry
When a seller develops a product or production for which it obtains a patent
Technological monopoly
When an individual seller has control over a market because of location
Geographical monopoly
Majority of members of the board of directors of competing corporations are the same
Interlocking directorate
Market situations created uh the government and protected by the barriers to entry
Government monopoly
Large corporation make up of smaller corporations dealing in unrelated industries
Conglomerate
Federal regulation and control over business of formerly heavily regulated industries
Deregulation
