| A | B |
|---|
| market structure | the extent to which competition prevails in particular markets |
| perfect competition | A market situation in which there are numerous buyers and sellers. No single buyer or seller can affect price |
| monopoly | a market situation controlled by a single supplier of a good or service that has no close substitute |
| barriers to entry | obstacles to competition that prevent others from entering into a market |
| economies of scale | long-run average costs of production decrease as a result of large size or output |
| patent | a govt. protection given to an invetor, giving him exclusive rights to make, use or sell an invention for a number of years |
| copyright | a govt. protection that allows authors and artists the exclusive right to sell, publish or reproduce their works for a specified number or years |
| oligopoly | industry dominated by a few suppliers who excercise some control over price |
| product differentiation | mfgers. try to differentiate their product from others by emphasizing minor differences in quality and features |
| cartel | an arrangement among groups of industrial businesses, often in different countries, to reduce international competition by controlling the price, production and distribution of goods |
| monoplistic competition | a market situation in which a large number of sellers offer similar but slightly different products. Each seller has some control over price |
| interlocking directorate | the majority of a board of directors for one company also serve as the board of directors for a competing corparation |
| antitrust legislation | federal & state govt laws passed to prevent new monopolies from forming and to break up those that already exist |
| merger | a combined company that results when one corporation buys more than half the stock of another corporation and thus, controls the second corporation |
| conglomerate | a large corporation made up of smaller corporations dealing in unrelated business |
| deregulation | govt. reduction in the amount of regulation and control that it has over business |
| geographic monopolies | market situation where a seller has control over a market because of location |
| natural monopolies | market situation where one company forces its comptetiors out of business by producing goods at the lowest cost |
| government monopolies | markets situations created by the govt and protected by legal barriers to entry; activity exclusive to govt. |
| technological monopoly | market situation resulting when a seller develops a product o for which it obtains a patent |
| imperfect competition | market situation in which individual or groups buys or sells a good or service in amounts large enough to affect price (ex. monopolies, oligopolies and monopolistic competition) |
| horizontal merger | buy out of a company by one in the same business |
| vertical merger | a merger that includes the buy out of suppliers |
| reregulation | federal govt regulation and control over business actvity of formerly heavily regulated industries |
| Federal Trade Commission (FTC) | regulates product warranties, unfair methods of competition in interstate commerce, and fraud in advertising |
| FDA | regulates purity and safety of foods, drugs, and cosmetics |
| FCC | regulates communication by TV, radio, etc |
| SEC | regulates the sale of stocks, bonds, and other investments |
| EEOC | works to stop discrimination in the workplace |
| OSHA | regulated workplace environment to be sure it is safe for employees |
| EPA | enforces environmental standards for air, water, and toxic waste |
| private good | an economic good consumed by one person, cannot be used by another |
| public good | an economic good that is used by everyone |
| externality | economic side effect |
| anti trust law | law that prevents monopolies from forming and promotes competition |
| bear market | a time when stock pries fall for a substantial period |
| bull market | a time when stock rices rise steadily |
