Economics Unit 3 Vocabulary

Market classification according to number and size of firms, type of product, and type of competition

•  Monopolistic Competition

• Pure/Perfect Competition

• Oligopoly

• Market Structure

Market structure characterized by a large number of well-informed independent buyers and sellers who exchange identical products, and have freedom of entry and exit (e.g., farming)

• Monopoly

• Industry

• Pure/Perfect Competition

• Market Structure

Market structure having all conditions of perfect competition, except for identical products; a form of imperfect competition (e.g., designer clothing)

• Industry

• Monopolistic Competition

• Market Failure

• Externality

Market structure characterized by a single producer; a form of imperfect competition (e.g., water, weapons-grade uranium)

• Public Good

• Monopoly

• Partnership

• Product Differentiation

A group of firms that produce identical or similar products

• Monopoly

• Industry

• Market Structure

•  Oligopoly

Real or imagined differences between competing products in the same industry

• Pure/Perfect Competition

• Corporation

• Product Differentiation

• Sole Proprietorship

Market where any of requirements for a competitive market - adequate  competition, knowledge of prices and opportunities, mobility of resources, and competitive profits - are lacking

• Market Failure

• Product Differentiation

• Oligopoly

• Monopoly

The unintended economic side-effect that either benefits or harms a third party not involved in the activity that caused it

• Public Good

• Externality

• Market Failure

• Monopolistic Competition

Economic product that is consumed collectively; highways, national defense, police and fire protection, etc.

• Monopoly

• Product Differentiation

• Oligopoly

• Public Good

The process of negotiating between union and management representatives over pay, benefits, and job-related matters

• Cooperative

• Collective BargainingOligopoly

•  Industry

• Corporation: