| A | B |
|---|
| Trust | A legal title to property held by one party for the benefit of another |
| Cease and Desist | Ruling requiring a company to stop an unfair business practice that reduces or limits competition. |
| Price Discrimination | When industrial buyers purchase products of similar quality and quantity, they expect to buy them on the same terms. |
| Public Disclosure | Requirement forcing a business to reveal information about its products or its operations to the public. |
| Sherman Antitrust Act | (1880) Protects trade and commerce against unlawful restraint and monopoly |
| Clayton Antitrust Act | – (1914) No price discrimination, and no exclusive sales. |
| Market Failure | Market where any of the requirements for a competitive market – adequate competition, knowledge of prices and opportunities, mobility of resources, and competitive profits – are lacking. |
| Externality | An incidental condition that may affect a course of action |
| Positive Externality | Beneficial side effect that affects an uninvolved third party. |
| Negative Externality | Harmful side effect that affects an uninvolved third party; external cost. |
| Public Good | Economic product that is consumed collectively; highways, national defense, police and fire protection. |
| Collusion | A secret agreement between two or more parties for a fraudulent, illegal, or deceitful purpose |
| Price Fixing | The result of an unlawful agreement between manufacturers or dealers to set and maintain specified prices on typically competing products. |
| Price Leadership | Situation in which a market leader sets the price of a product or service, and competitors feel compelled to match that price. |
| Patent | A grant made by a government that confers upon the creator of an invention the sole right to make, use, and sell that invention for a set period of time. |
| Copyright | The legal right granted to an author, composer, playwright, publisher, or distributor to exclusive publication, production, sale, or distribution of a literary, musical, dramatic, or artistic work. |
| Differentiation | To make different by alteration or modification. |
| Non-Price Competition | Competition involving the advertising of a product’s appearance, quality, or design, rather than its price. |
| The four Types of a Monopoly | Pure Monopoly, Natural Monopoly, Geographical Monopoly, Technological Monopoly |
| What is the use of the Perfect COmpetition Model? | ? |
| What is the role of advertising? | ? |
| What are five advertising technuques? | Testimonials, Bandwagon Appeal, Scare Tactics, Appeal to individual Feelings, Sex Appeal |
| What is one example of each market structure in the US economy? | ? |
| Why are resources not always mobile? | ? |
| What are three federal regulatory agencies? | SEC, FDA, FAA |
