This market structure is considered "the ideal model of a market economy"
What is perfect competition?
100
This is the number of sellers in a monopolistic industry.
What is one?
100
This market structure occurs when many sellers offer similar, but not standardized products. Such as sandwich shops or t-shirt makers.
What is monopolistic competition?
100
This term refers to the removal of government control of business.
What is deregulation?
100
This term refers to temporarily setting prices so low that your competition will go out of business.
What is predatory pricing?
200
This is a product that consumers see as identical regardless of producer.
What is a standardized product?
200
These make it hard for new businesses to enter the market - such as government regulations, scale of operations, etc.
What are barriers to entry?
200
This is the market structure where there are few producers who make standardized / differentiated products. e.g. cola companies or cereal companies.
What is an oligopoly?
200
This agency protects consumers from unsafe foods, drugs, or cosmetics, and requires truth in labeling of these products.
What is the Food and Drug Administration (FDA)?
200
This legal document creates a technological monopoly, giving an inventor control over an invention or process for a certain number of years.
What is a patent?
300
This term for businesses in perfect competition means they cannot set the prices for its products, but instead must accept the market price.
What is "price takers"?
300
This term refers to the monopolist's ability to set the price for its good/service, without having to worry about competition.
What is "price maker"?
300
This is the effort to distinguish a product from similar products.
What is product differentiation?
300
This occurs when competing businesses divide the market amongst themselves
What is market allocation?
300
This federal agency protects human health by enforcing environmental laws regarding pollution and hazardous materials.
What is the Environmental Protection Agency (EPA)?
400
This term means the percent of total sales a business has in a market.
What is market share?
400
This type of monopoly exists when there are no other producers within a certain region. e.g. sports franchises, small town businesses.
What is a geographic monopoly?
400
This term applies mostly to oligopolies and monopolies, where the average cost of production falls as the producer grows larger
What is "economies of scale"?
400
This law was enacted in 1890 to give the government power to control monopolies and to regulate business practices.
What is the Sherman Antitrust Act?
400
This is a group of firms combined for the purpose of reducing competition in an industry.
What is a trust?
500
This is the term to describe the real world scenario where all markets and industries lack one factor of perfect competition.
What is imperfect competition?
500
This type of monopoly occurs when the costs of production are lowest when there is only one producer. e.g. Lincoln Water System or Lincoln Electric System.
What is natural monopoly?
500
Aside from perfect competition, this is the easiest market structure for firms to enter or exit.
What is monopolistic competition?
500
This is what the government issues to stop a firm from engaging in behavior unfair to its competitors or consumers.
What is a cease and desist order?
500
This is where the government requires businesses to reveal product information to consumers.