Download (Can You Explain Various Terms Of Principle Of Economics Flashcards) Flashcard

Choose a format below:

TEXT Format (.txt) MS-Excel Format (.xls)

Select delimiter » Comma Semicolon Tab New Line Custom

Preview »

Side A ------ Side B
What is perfect competition? ------ An ideal market structure buyers and sellers compete fully under the laws of supply and demand. (fruit)

What is a monopolistic competition? ------ Same as perfect competition, except sellers offer similar, instead of identical products. (coke)
What is an oligopoly? ------ Exists when a few large sellers control most of the market (possible 70%) (Cereal)
What is a monopoly? ------ When a single seller controls the entire market. (electronic)
What is a natural monopoly? ------ This is where competition is naturally inconvenient of impractical. (railroads)
What is geographic monopoly? ------ When the potential for profit is limited by location (Jimmy Jim's antique store)
What is a technological monopoly? ------ When a producer develops new technology that enables the creation of a new product. (
What is a government monopoly? ------ Any product where the government is sole seller of a product.
What is a price leadership? (oligopoly) ------ Part of interdependent pricing. One company will raise the price and hope the others follow.
What is price war? (oligopoly) ------ If the other companies do not raise prices a war could be set off where each company undercuts each other. 
What is a collusion (oligopoly) ------ The illegal act of secret agreements between companies to set production levels, and price.
What is a cartel? (oligopoly) ------ Illegal in the U.S., this is where companies openly organize price levels and market sharing.

Side A ------ Side B
What is perfect competition? ------ An ideal market structure buyers and sellers compete fully under the laws of supply and demand. (fruit)

What is a monopolistic competition? ------ Same as perfect competition, except sellers offer similar, instead of identical products. (coke)
What is an oligopoly? ------ Exists when a few large sellers control most of the market (possible 70%) (Cereal)
What is a monopoly? ------ When a single seller controls the entire market. (electronic)
What is a natural monopoly? ------ This is where competition is naturally inconvenient of impractical. (railroads)
What is geographic monopoly? ------ When the potential for profit is limited by location (Jimmy Jim's antique store)
What is a technological monopoly? ------ When a producer develops new technology that enables the creation of a new product. (
What is a government monopoly? ------ Any product where the government is sole seller of a product.
What is a price leadership? (oligopoly) ------ Part of interdependent pricing. One company will raise the price and hope the others follow.
What is price war? (oligopoly) ------ If the other companies do not raise prices a war could be set off where each company undercuts each other. 
What is a collusion (oligopoly) ------ The illegal act of secret agreements between companies to set production levels, and price.
What is a cartel? (oligopoly) ------ Illegal in the U.S., this is where companies openly organize price levels and market sharing.