Economics: Business Organizations and Market Structures – Flashcards
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monopoly
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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
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oligopoly
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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.
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monopolistic competition
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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
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perfect competition
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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.
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market structure
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the degree of competition in a market, ranging from many buyers and sellers to few or even single buyers and sellers
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competition
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attempts by two or more individuals or organizations to acquire the same goods, services ,or productive and finanicial resources.
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markets
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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
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collusion
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a secret agreement between firms to fix prices or engage in other activities to restrict competition in an industry; illegal in the United States
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natural monopoly
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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
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imperfect competition
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any market strucutre in which firms are not price takers, but instead must seek the price and output levels that maximize their profits
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barriers to entry
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factors that restrict entry into an industry and give cost advantages to existing firms; i.e. resources or patents
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price taker
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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
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nonprofit organization
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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
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dividend
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a share of a company's net profits paid to stockholders
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stock
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an ownership share or shares of ownership in a corporation
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corporation
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a legal entity owned by shareholders whose liability for the firm's losses is limited to the value of the stock they own
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partnership
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a business with two or more owners who share the firm's profits and losses
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liability
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legal responsibility to pay for damages or losses one has caused
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sole proprietorship
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a business owned by one person who receives all the profits and is responsible for all the debts incurred by the business
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cartel
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group who practices collusion
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cartel example
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OPEC is a ____(include word example after answer)
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Place, Price, Product, Promotion
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4 Ps of marketing (alphabetical order)
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franchise
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parent companies sell the right of a firm to use their name and products in a given area
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franchise example
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McDonalds is a____(include word example after answer)
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cooperatives
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organizations owned by a group of individuals for their shared benefits
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cooperative example
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Sams is a ____(include word example after answer)
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ATT
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Company broken up by government anti-trust laws
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Microsoft
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company not broken up by government anti-trust laws; evaded government break up
