social 12 (econ)- chapter 6 Flashcards
an ideal market structure in which customers and producers each compete directly and fully under the laws of supply and demand.
perfect competition
also called consumers
buyers
also called producers
sellers
one seller controls all production of a good or service
monopoly
sellers offer different products rather than identical
monopolistic competition
point out differences
differentiation
compete on a basis other than price
nonprice competition
a market structure in which a few large sellers control most of the production of a good or service
oligopoly
being very responsive to-or dependent on- the pricing actions o their competitors.
interdependent pricing
one of the largest sellers in the market takes the lead by setting a price for its product
price leadership
sellers aggressively undercut eachother’s prices in an attempt to gain market share.
price war
sellers secretively agree to set production levels or prices for their products
collusion
companies openly organize a system of price setting an market sharing.
cartel
features a single large seller that produces a good or service most efficiently
natural monopolies
a condition in which, because of the level of resources needed, the cost of producing each unit of a product declines as the total number of units produced increases
economies of sale
a market where geographic area is so limited that a single seller can control an item’s manufacture, sale, distribution, or price
geographic monopolies
a market that is dominated by a single producer because of new technology it has developed
technological monopolies
gives a business or individual the exclusive right to produce, use, rent, or sell an invention or discovery
patent
gives authors, musicians, and artists exclusive rights to publish, duplicate, perform, display, and sell their creative works
copyright
any market in which a government is the sole seller of a product
government monopoly
huge monopolies that dominated the marketplace
trusts
economic systems prosper when the government does not interfere with the market in any way.
laissez-faire
designed to monitor and regulate big businesses, prevent monopolies from forming, and dismantle existing monopolies
antitrust legislation
created the interstate commerce commission (ICC) to oversee the railroad rates; currently regulates railroads, motor vehicles, and other freight carriers
interstate commerce act