Vocabulary
Perfect Competition
Imperfect Competition
Antitrust Legislation
Regulation
100
When one corporation joins with another corporation.
What is a merger?
100
The interaction of these two concepts determines the price of goods in perfect competition.
What is supply and demand?
100
The right to exclusively manufacture an invention of a number of years.
What is a patent?
100
Type of merger in which the two corporations are in the same business.
What is a horizontal merger?
100
Government gradually reduces regulations over business activity.
What is deregulation?
200
Market situation with numerous buyers and sellers, but no one buyer or seller can affect the price.
What is perfect competition?
200
The price at which quantity demanded equals the quantity supplied.
What is equilibrium price?
200
A single seller controls the supply of the good or service thus determining the price.
What is a pure monopoly?
200
The buying out of an unrelated business.
What is a conglomerate merger?
200
Government regulates over business actions of formerly heavily regulated industries.
What is re-regulation?
300
When any individual or group buys or sells a good or service in amounts large enough to affect price.
What is imperfect competition?
300
One of the basic characteristics of our market economy.
What is competition?
300
These are the four types of monopolies.
What is natural, geographic, technological, and government?
300
Made it illegal to monopolize or attempt to monopolize any part of interstate commerce.
What is the Sherman Act (1890)?
300
Regulates the workplace environment.
What is the OSHA?
400
Laws passed to prevent new monopolies from forming and to break up those that already exist.
What is antitrust legislation?
400
Perfect competition yields this concept because industries are paying only what society has to put in to make those products.
What is economic efficiency?
400
A few suppliers that exercise some control over price dominate.
What is an oligopoly?
400
Outlawed mergers that substantially lessen competition.
What is the Clayton Act (1914)?
400
Develops and enforces environmental standards for air, water, and toxic waste.
What is the EPA?
500
When some members of the boards of directors of competing corporations are the same.
What is interlocking directorate?
500
These are the five conditions of perfect competition.
What is large market, similar product, easy entry and exit, easily obtainable information, and no control over price.
500
Large number of sellers offer similar but slightly different products.
What is monopolistic competition?
500
When a business that is buying or selling to another business merges with that business.
What is a vertical merger?
500
Regulates purity and safety of foods, drugs, and cosmetics.
What is the FDA?
M
e
n
u