| Term | Definition |
|---|
| Market Structure | The setting in which a seller finds itself. Market structures are defined by their characteristics, such as the number of sellers in the market, the product that sellers produce and sell, and how easy or difficult it is for new firms to enter the market. |
| Perfect Competition | A market structure in which (1) there are many buyers and sellers, (2) all firms sell identical goods, (3) buyers and sellers have all relevant information about buying and selling activities, and (4) there is easy entry into the market and easy exit out of the market. |
| Price Taker | A seller that can sell all its output at the equilibrium price but can sell none of its output at any other price. |
| Monopoly | A market structure in which (1) there is a single seller, (2) the seller sells a product for which there are no close substitutes, and (3) there are extremely high barriers. |
| Barrier to Entry | Anything that prohibits a firm from entering a market. |
| Price Searcher | A seller that can sell some of its output at various prices. |
| Public Franchise | A right granted to a firm by government that permits the firm to provide a particular good or service and excludes all others from doing so. |
| Natural Monopoly | A firm with such a low average total cost (per-unit cost) that only it can survive in the market. |
| Monopolistic Competition | A market structure in which (1) there are many buyers and many sellers, (2) sellers produce and sell slightly differentiated products, and (3) there is easy entry into and easy exit from the market. |
| Oligopoly | A market structure in wichi (1) there are few sellers, (2) sellers produce and sell either identical or slightly differentiated products, and (3) there are significant barriers to entry. |
| Cartel Agreement | An agreement that specifies that the firms eneterd into the agreement will act in a coordinated way to reduce the competition among them. |
Combine with other sets
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