| Term | Definition |
|---|
| market structure | a set of conditions that describes the characteristics of a market in which a business firm competes |
| perfect competition | a market structure in which a large number of firms all produce an identical product |
| pure monopoly | market structure with only one seller in the market |
| monopolistic competition | a market structure with many firms that offer similar but not identical products can also be called imperfect competition |
| oligopoly | a market structure which few large businesses supply most or all of the products in a market |
| concentration ratio | the percentage of an industry's sales accounted for by its four largest firms |
| collusion | an agreement in which companies restrict production to raise prices and profit |
| price-fixing | where all firms in market agree to charge the same or similar prices |
| merger | when one business buys another |
| vertical merger | combination of 2 or more companies involved in different steps of a production process |
| horizontal merger | when 2 or more companies engage in the same business |
| conglomerate merger | combines 2 or more unrelated companies under a single management |
| joint venture | when 2 or more companies keep their independence while cooperating on a particular project |
| marketing | everything that takes place between production and purchase |
| break-even point | the point of production at which income from sales equals total fixed and variable costs |
Combine with other sets
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