Chapter 5 Vocabulary

• a market structure in which a few large firms dominate a market.

• Monopoly

• Oligopoly

• Perfect Competition

• Monopolistic Competition

• an agreement among firms to divide the market, set prices, or limit production.

• Collusion

• Antitrust

• Merger

•  Nonprice Competition

• Laws that encourage competition in the marketplace.

• Collusion

• Antitrust laws

• Barriers to entry

• Patent

• A market dominated by a single seller.

• Oligopoly

• Perfect Competition

• Monopoly

• Monopolistic Competition

• A market structure in which a large number of firms all produce the same product, also called pure competition.

• Perfect Competition

• Monopolistic Competition

• Oligopoly

• Monopoly

• A license that gives the inventor of a new product the exclusive right to sell it for a certain period of time. Generally 20 years. 

• Regulation

• Patent

• Antitrust Law

• Merger

• A combination of two or more companies into a single firm.

• Merger

• Monopoly

• Patent

• Price war

• The removal of some government controls over a market.

• Regulation

• Deregulation

• Price war

• Commodity

• a series of competitive price cuts that lowers the market price below the cost of production.

• Price war

• Collusion

• Deregulation

• Monopoly

• A product that is the same no matter who produces it, such as petroleum, notebook paper, or milk.

• Commodity

• Merger

• Cartel

•  Nonprice Competition