social 12 (econ)- chapter 6 Flashcards

1
Q

an ideal market structure in which customers and producers each compete directly and fully under the laws of supply and demand.

A

perfect competition

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2
Q

also called consumers

A

buyers

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3
Q

also called producers

A

sellers

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4
Q

one seller controls all production of a good or service

A

monopoly

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5
Q

sellers offer different products rather than identical

A

monopolistic competition

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6
Q

point out differences

A

differentiation

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7
Q

compete on a basis other than price

A

nonprice competition

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8
Q

a market structure in which a few large sellers control most of the production of a good or service

A

oligopoly

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9
Q

being very responsive to-or dependent on- the pricing actions o their competitors.

A

interdependent pricing

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10
Q

one of the largest sellers in the market takes the lead by setting a price for its product

A

price leadership

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11
Q

sellers aggressively undercut eachother’s prices in an attempt to gain market share.

A

price war

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12
Q

sellers secretively agree to set production levels or prices for their products

A

collusion

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13
Q

companies openly organize a system of price setting an market sharing.

A

cartel

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14
Q

features a single large seller that produces a good or service most efficiently

A

natural monopolies

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15
Q

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

A

economies of sale

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16
Q

a market where geographic area is so limited that a single seller can control an item’s manufacture, sale, distribution, or price

A

geographic monopolies

17
Q

a market that is dominated by a single producer because of new technology it has developed

A

technological monopolies

18
Q

gives a business or individual the exclusive right to produce, use, rent, or sell an invention or discovery

19
Q

gives authors, musicians, and artists exclusive rights to publish, duplicate, perform, display, and sell their creative works

20
Q

any market in which a government is the sole seller of a product

A

government monopoly

21
Q

huge monopolies that dominated the marketplace

22
Q

economic systems prosper when the government does not interfere with the market in any way.

A

laissez-faire

23
Q

designed to monitor and regulate big businesses, prevent monopolies from forming, and dismantle existing monopolies

A

antitrust legislation

24
Q

created the interstate commerce commission (ICC) to oversee the railroad rates; currently regulates railroads, motor vehicles, and other freight carriers

A

interstate commerce act

25
prohibits any agreements, contracts, or conspiracies that would restrain interstate trade or cause monopolies to form
sherman antitrust act
26
clarified and strengthened the Sherman antitrust act by prohibiting price discrimination, local price cutting, mergers that reduce competition, and exclusive sales contracts
clayton antitrust act
27
the practice of offering different prices to different customers under the same circumstances
price discrimination
28
created the federal trade commission (FTC) to investigate charges of unfair method of competition and commerce
federal trade and commission act
29
protects small retail businesses by prohibiting wholesalers form charging small retailers higher prices than they charged large retailers and by prohibiting large retailers from setting artificially low prices
robinson-patman act
30
list the conditions that exist when you have perfect competition
1. many buyers and sellers act independently 2. sellers offer identical parts 3. buyers are well informed about products 4. sellers can enter or exit the market easily
31
list the three conditions that exist when an oligopoly is present
1. there are only a few large sellers 2. sellers offer identical or similar products 3. other sellers cannot enter the market easily
32
why can't sellers enter the market easily?
1. start up cost 2. gov regulations/laws 3. consumer loyalty
33
list the three conditions that exist when a monopoly is present
1. there is a single seller 2. no close substitute goods are available 3. other sellers cannot enter the market easily
34
list the three forces that limits the seller's control over prices
1. consumer demand 2. potential competition 3. government regulation