Economics Chapter 7 Vocabulary

philosophy that government should not interfere with business activity

• Laissez-faire

• Market Structure

• Perfect Competition

• imperfect competition

market classification according to number and size of firms, type of product, and type of competition; nature and degree of competition among firms in the same industry

• natural monopoly

• positive externality

• market failure

• Market Structure

market structure characterized by a large number of well-informed independent buyers and sellers who exchange identical products

• imperfect competition

• perfect competition

• nonprice competition

• monopolistic competition

market structure where all conditions of pure competition are not met; monopolistic competition, oligopoly, and monopoly

• Laissez-faire

• Perfect Competition

• imperfect competition

• market failure

market structure having all conditions of pure competition except for identical products; a form of imperfect competition

• monopolistic competition

• natural monopoly

• monopoly

• technological monopoly

real or imagined differences between competing products in the same industry

• Collusion

• price fixing

• product differentiation

• Oligopoly

competition involving the advertising of a product's appearance, quality, or design, rather than its price

• non-price competition

• public disclosure

• Trusts

• government monopoly

market structure in which a few large sellers dominate and have the ability to affect prices in the industry; form of imperfect competition

• Oligopoly

• monopoly

• natural monopoly

• geographic monopoly

agreements, usually illegal, among producers to fix prices, limit output, or divide markets

• Laissez-faire

• market failure

• Collusion

• Perfect Competition

agreement, usually illegal, by firms to charge a uniform price for a product

• price fixing

• natural monopoly

• economics of scale

• market failure