Market Differences.
Define differentiated products.
What are products that are visibly different from one another?
Define prefect competition.
What is many producers selling an identical product, no single firm controls the price, and no businesses find it relatively easy to to enter and exit the market.
Antitrust act of 1890.
What is the Sherman Antitrust Act?
A _________ is any system where buyers and sellers interact to exchange goods and services, with prices being the primary mechanism for conveying information and allocating resources. It is not necessarily a physical place, but rather a set of relationships and institutions that facilitates trade based on supply and demand, leading to an equilibrium price where the quantity supplied equals the quantity demanded.
What is the market?
Define undifferentiated products.
What are products that are exactly alike regardless of which firm produces them?
A market structure defined by the presence of a large number of buyers and sellers, none of whom can individually affect the market price.
What is imperfect competition?
Antitrust Act of 1914.
What is the Clayton Act?
Define an industry.
What is an economic activity concerned with the processing of raw materials and manufacture of goods in factories.
Give an example of differentiated and undifferentiated products.
What are cars (differentiated) and milk (undifferentiated)?
Define an oligopoly.
What is "selling a few"?
Name the four practices that the Clayton Act of 1914 prohibited.
What is interlocking directorates, tying contracts, anticompetitive takeovers, and price discrimination?
A governmental agency used to enforce the Clayton Act.
What is the Federal Trade Commission (FTC)?
Name the difference between a natural barrier to entry and a artificial barrier to entry.
What is natural barriers to entry arise from the inherent, structural characteristics of an industry, while artificial barriers to entry are deliberately created or enhanced by existing firms or the government to prevent new competition.
A market structure that means "one seller".
What is a monopoly?
The difference between a monopoly and a trust
What is a monopoly is a form of market organization in which there is only one supplier in the industry. A trust is a social element essential for transactions and a business structure where one management group controls several companies?
Legislation used by Congress to pass to make trust illegal.
What is the Sherman Antitrust Act of 1890?
List four key differences that distinguish one industry from another.
What is the number of firms, product differences, control prices, and entering/exiting the industry?
Two types of a monopoly.
What are natural and legal monopoly?
An arrangement whereby a person holds property as its nominal owner for the good of one or more beneficiaries.
What is a trust?
Government agency Created to enforce the Clayton Act.
What is the Federal Trade Commission (FTC)