logo image

Econ chapters 7-8

perfect competition
A market structure in which a large number of firms all produce the same product and no single seller controls supply or prices
four conditions for perfect competition
many buyers and sellers,identical products,informed buyers and sellers,free market entry and exit
A product that is the same no matter who produces it.
barrier to entry
Any factor that makes it difficult for a new firm to enter a market
imperfect competition
a market structure that does not meet the conditions of perfect competition
barriers to entry
start up cost,technology
A market in which a single seller dominates
economies of scale
Factors that cause a producer’s average cost per unit to fall as output rises
natural monopoly
A market that runs most efficiently when one large firm supplies all of the output
government monopoly
a monopoly created by the government
government monopolys
technological,franchises and licenses,industrial organizations
A license that gives the inventor of a new product the exclusive right to sell it for a certain period of time
A contract that gives a single firm the right to sell its goods within an exclusive market
A government issued right to operate a business
price discrimination
Division of customers into groups based on how much they will pay for a good
market power
The ability of a company to control prices and total market output
monopolistic competition
a market structure in which many companies sell products that are similar but not identical
fourconditins of monpolistic competition
many firms,few barriers to entry,little control over price,differenciated products
making a product different
nonprice competition
a way to attract customers through style, service, or location, but not a lower price
A market structure in which a few large firms dominate a market
nonprice competition characteristics
physical characteristics,location,service level,advertising image or status
price war
a series of competitive price cuts that lowers the market price below the cost of production
An agreement among firms to divide the market, set prices, or limit production
price fixing
An agreement among firms to charge one price for the same good
A formal organization of producers that agree to coordinate prices and production
predatory pricing
selling a product below cost to drive competitors out of the market
antitrust laws
Laws that encourage competition in the marketplace
grouping of companies that dicourages competition
Combination of two or more companies into a single firm
removeal of some governmental controls over a market
sole proprietorship
A business owned by one person
business organization
the ownership structure of a company or firm
advantages of sole proprietorships
easy to start and end,few regulation,sole receiver of profit,full control
disadvantaes of soleproprietorships
unlimited personal liability,limited access to resourses,lack of permanence
business licence
authorization to operate a business issued by a local government
zoning laws
Regulations that limit how property in a given area can be used
An amount owed by a business
A business in which two or more persons combine their assets and skills
general partnership
A partnership in which all owners share in operating the business and in assuming liability for the business’s debts.
limited partnership
-Must have one or more general partners and one or more limited partner
limited liability partnership
All partners are limited partners and not responsible for the debts and other liabilities of other partners
articles of partnership
A partnership agreement that spells out each partner’s rights and responsibilities
Any type of tangible or intangible resources that can be measured in monetary terms.
business franchise
a semi-independent business that pays fees to a parent company in return for the exclusive right to sell a certain product or service in a given area
The share of earnings given by a franchise as payment to the franchiser
A business owned by stockholders who share in its profits but are not personally responsible for its debts
A certificate of ownership in a corporation
A debt security that promises to make payments periodically for a specified period of time. It is where interest rates are determined.
certificate of incorporation
license to form a corporation issued by state government
A distribution to corporate shareholders of corporate profits or income, disbursed in proportion to the number of shares held.
limited liability corporation
a type of business with limited liability for the owners, with the advantage of not paying corporate income tax
horizontal merger
the combination of two or more firms competing in the same market with the same good or service
vertical merger
the combination of two or more firms involved in different stages of producing the same good or service
A group of diverse companies under common ownership and run as a single organization, they all form together to make a large conglomerate.
multinational corporations
a large business that operates in many countries
A business that is owned by the members it serves and is managed in their interest.
advantages of partnerships
easy start up,financial impact,shared decision making
disadvantaes of partnersips
unlimited liability,potential for conflict,lack of permenance

Need essay sample on "Econ chapters 7-8"? We will write a custom essay sample specifically for you for only $ 13.90/page

Can’t wait to take that assignment burden offyour shoulders?

Let us know what it is and we will show you how it can be done!
Sorry, but copying text is forbidden on this website. If you need this or any other sample, please register

Already on Businessays? Login here

No, thanks. I prefer suffering on my own
Sorry, but copying text is forbidden on this website. If you need this or any other sample register now and get a free access to all papers, carefully proofread and edited by our experts.
Sign in / Sign up
No, thanks. I prefer suffering on my own
Not quite the topic you need?
We would be happy to write it
Join and witness the magic
Service Open At All Times
Complete Buyer Protection
Plagiarism-Free Writing

Emily from Businessays

Hi there, would you like to get such a paper? How about receiving a customized one? Check it out https://goo.gl/chNgQy

We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy