Market Structures
a situation in which a single seller (or group of sellers) is the only producer or supplier of a product in a market, preventing any form of competition in the market
what is a monopoly?
a tax imposed on imported goods
what is a tariff?
the physical foundation created for the benefit of a country’s citizens, such as roads, buildings, and waterworks
What is Infrastructure?
the advantage gained when a country’s per-unit production cost is lower than that of other countries
What is absolute advantage?
a market structure in which there are many sellers and buyers of homogeneous products
what is perfect competition?
an agreement between two or more countries to conduct trade among themselves without barriers or restrictions
what is a free trade agreement?
a business structure in which an individual owns the entire company
What is a sole proprietorship?
when the value of a country’s currency is determined by demand and supply forces
What is a floating exchange rate?
a market structure in which a single company is operating efficiently, and no other company can operate more efficiently
what is a natural monopoly?
the practice of protecting domestic businesses by imposing restrictions on imported goods and services
What is protectionism?
the control that consumer preference exercises over the production of goods and services
What is consumer sovereignty?
to transfer a portion of a company’s work to another company to reduce costs
What is outsourcing?
a market structure dominated by few companies
what is an oligopoly?
in economics, a limit on the quantity or value of goods imported or exported
what is a quota?
the legal declaration of a business entity as separate from its owners
What is Incorporation?
an agreement to eliminate most tariffs on the trade between United States, Mexico, and Canada
What is NAFTA
a market structure in which many companies sell similar but not identical products
what is monopolistic competition?
a free trade agreement between the United States and Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and the Dominican Republic
What is CAFTA-DR?
a company that sells its stock to the general public in a stock market
What is a publicly held company?
the advantage gained when a country produces goods and services at lower opportunity cost than other countries in the market
What is comparative advantage?