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28 terms

Economics: Business Organizations and Market Structures

a market structure in which there is a single supplier of a good for service. Also, a firm that is the single supplier of a good or service for which there are no close substitutes
a market strucutre in which a few, relatively large firms account for all or most of the production or sales of a good or service in a particular market, and where barriers to new firms entering the market are very high.
monopolistic competition
a market structure in which slightly differentiated products are sold by a large number of relativel small producers, and in which the barriers to new firms entering the market are low
perfect competition
a market strucutre in which a large number of relatively small firms produce and sell identical products and in which there are no significant barriers to entry into or exit from the industry.
market structure
the degree of competition in a market, ranging from many buyers and sellers to few or even single buyers and sellers
attempts by two or more individuals or organizations to acquire the same goods, services ,or productive and finanicial resources.
places, institutions, or technological arrangments by means of which goods or services are exchanged; also the set of all sale and purchase transactions that affect the price of some good or service
a secret agreement between firms to fix prices or engage in other activities to restrict competition in an industry; illegal in the United States
natural monopoly
an industry in which the advantages of large-scale production make it possible for a single firm to produce the entire output of the market at a lower average cost than a number of firms each producing a smaller quantity
imperfect competition
any market strucutre in which firms are not price takers, but instead must seek the price and output levels that maximize their profits
barriers to entry
factors that restrict entry into an industry and give cost advantages to existing firms; i.e. resources or patents
price taker
a firm that is unable to set a price that difffers from the market price with losing profit; a firm in a perfectly competitive industry
nonprofit organization
an organization that is exempt from federal (and sometimes state) taxes; receives income from donors, subsidized beneficiaries, and indirectly, taxpayers; and therefore should provide its goods or services free or below cost
a share of a company's net profits paid to stockholders
an ownership share or shares of ownership in a corporation
a legal entity owned by shareholders whose liability for the firm's losses is limited to the value of the stock they own
a business with two or more owners who share the firm's profits and losses
legal responsibility to pay for damages or losses one has caused
sole proprietorship
a business owned by one person who receives all the profits and is responsible for all the debts incurred by the business
group who practices collusion
cartel example
OPEC is a ____(include word example after answer)
Place, Price, Product, Promotion
4 Ps of marketing (alphabetical order)
parent companies sell the right of a firm to use their name and products in a given area
franchise example
McDonalds is a____(include word example after answer)
organizations owned by a group of individuals for their shared benefits
cooperative example
Sams is a ____(include word example after answer)
Company broken up by government anti-trust laws
company not broken up by government anti-trust laws; evaded government break up