Ch. 7 Vocab

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.

• Laissez-Faire

• Collusion

• Market Structure

• Spillover Effects

Theoretical 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.

• Perfect Competition

• Collusion

• Laissez-Faire

• Spillover Effects

Illegal agreement among producers to fix prices, limit output, or divide markets.

• Market Structure

• Collusion

• Laissez-Faire

• Spillover Effects

Philosophy that government should not interfere with business activity.

• Spillover Effects

• Perfect Competition

• Laissez-Faire

• Market Structure

Unintended side effects that either benefit or harm a third party not involved in the activity that caused it.

• Collusion

• Spillover Effects

• Market Structure

• Perfect Competition

What is the term for an illegal agreement by firms to charge a uniform price for a product?

• Oligopoly

• Geographic Monopoly

• Price-Fixing

• Public Good

Which term describes competition based on a product's appearance, quality, or design, rather than its price?

• Nonprice Competition

• Oligopoly

• Public Good

• Geographic Monopoly

What is the market structure called where few large sellers dominate and have the ability to affect prices in the industry?

• Geographic Monopoly

• Oligopoly

• Price-Fixing

• Public Good

Which market structure occurs when a firm has a monopoly because of its location or the small size of the market?

• Public Good

• Price-Fixing

• Geographic Monopoly

• Nonprice Competition

What term is used for economic products that are paid for and consumed collectively, such as highways and national defense?

• Public Good

• Oligopoly

• Price-Fixing

• Nonprice Competition