Market Structure/Failures Flashcards
Perfect Competition
A market in which a large number of first all produce the same product
Monopoly
Market dominated by a single seller who sells unique product
Monopolistic Competition
Many companies sell products that are similar but not identical
Oligopoly
A few firms dominate the market
Externality
A side effect of production or consumption that has consequences for people other than the producer or consumer
Technology Spillover
When technically knowledge spreads from one company or individual to another, thereby promoting further innovations.
Public goods
Goods and services that are not provided by the market system because of the difficulty of getting people who use them to pay for their use.
Private goods
Goods that are sold in markets
Excludable goods
Anyone who does not pay for the goods can be excluded from using it.
Nonexcludable
A food or service whose use cannot be denied to anyone
Rival in consumption
A good cannot be consumed by more than one person at the same time
