Competition and Market Structures
A theoretical market structure that requires three conditions: very large numbers, identical products, and freedom of entry and exit ...
Answer: pure competition.
Economic product that are paid for and consumed collectively, such as highways, national defense, police and fire protection ...
Answer: public good.
Practice of charging different customers different prices for the same product; usually illegal ...
Answer: price discrimination.
Market classification according to number and size of firms, type of product, and type of competition, nature and degree of competition among firms in the same industry ...
Answer: market structure.
Unintended side effects that either benefit or harm a third party not involved in the activity that caused it ...
Answer: spillover effects.
Illegal combinations of corporations or companies organized to suppress competition ...
Answer: trusts.
Theoretical market structure characterized by a large number of well-informed independent buyers and sellers who exchange identical products and have freedom of entry and exit ...
Answer: perfect competition.
Economic side effects that affect an uninvolved third party ...
Answer: externalities.
Ruling requiring a company to stop an unfair business practice that reduces or limits competition ...
Answer: cease and desist order.
Competition based on a product’s appearance, quality, or design, rather than its price ...
Answer: nonprice competition.
Comparison of the cost of an action to its benefits ...
Answer: cost-benefit analysis.
Increasingly efficient use of personnel, plant, and equipment as a firm becomes larger ...
Answer: economies of scale.
Philosophy that government should not interfere with business activity ...
Answer: laissez-faire.
Condition where any of the five requirements for a competitive market – usually adequate competition, knowledge of prices and opportunities, mobility of resources, and competitive profits – leads to an inefficient allocation of resources characterized by too much or too little being produced ...
Answer: market failure.
Requirement forcing a business to reveal information about its products or its operations to the public ...
Answer: public disclosure.