Competition
Market condition where there are numerous buyers and sellers, and no single buyer and seller can affect the price of a good or service.
What is Perfect Competition.
where one seller has almost all control of the market
What is a monopoly?
companies openly organize a system of price-setting and market sharing
What is a cartel.
Federal and state laws passed to prevent the forming of and assisting in the break up of monopolies.
What is antitrust legislation.
type of monopoly where a company has a patent on an invention disallowing any competition
What is a technological monopoly.
besides having many buyers and sellers and identical products, what are the other 2 conditions of perfect competition
What is easy entry and exit of a market and informed buyers
another term for a producer
What is a seller
a type of monopoly where a single large seller produces a good or service most efficiently, such as public utilities
What is natural
theory that states that economic systems prosper when the government does not interfere in the market
What is laissez-faire
Industry dominated by a few suppliers that have some control over price.
What is an oligopoly.
this controls the price of a perfect competition market
What supply and demand
An exclusive right to make, use, or sell an invention.
What is a patent.
Use of minor differences in qualities and features to differentiate between similar goods and services.
What is product differentiation.
act passed in the 19th century to first regulate railroads and is utilized to regulate trade throughout the country
What is Interstate Commerce Act
name of the company that was one of the largest trusts in American history that was broken up into 33 smaller companies
What is Standard Oil Company
main difference between perfect and monopolistic competition
What is similar but different products in monopolistic competition
An exclusive right to sell, publish, or reproduce creative works for a specified number of years.
What is copyright.
The first antitrust legislation that sought to protect trade and commerce from monopolies.
What is the Sherman Act.
Local, state and national governments hold exclusive rights to contract out work (ie bridge construction) or allow services
What is a government monopoly.
closest thing to perfect competition would be ....
what is agriculture?
the idea that the leader of a market determines the price for all other competitors - example is price leadership
What is interdependent pricing?
To compete by using product differentiation and by using advertising.
What is nonprice competition.
act that closed loopholes in anti-trust legislation by using specific language, such as forbidding competitors to buy shares of other competitors
What is Clayton Anti-Trust Act
the negative effect of a price war
What is the prices tend to rise