Market Structures Vocab

Front

a product that is exactly the same no matter who produces it

Back

commodity

Front

an obstacle that can restrict a producer’s access to a market and limit competition

Back

barriers to entry

Front

the initial expense of launching a business

Back

start-up costs

Front

a producer that has no influence over the price of a product;

Back

price taker

Front

any market structure in which producers have some control over the price of their products; in such a market, prices are no longer set by supply and demand

Back

Imperfect competition

Front

a producer that can set a price for a product, rather than accepting the market price

Back

Price setter

Front

a combination of firms that works to eliminate competition and control prices, usually prohibited by law

Back

Trust

Front

the greater efficiency and cost savings that result from large-scale or mass production

Back

Economies of scale

Front

the ability of the dominant firm in an oligopoly to set price levels that other firms then follow

Back

Price leadership

Front

an intense competition among rival firms in an oligopoly in which they successively lower prices to increase sales and win a larger share of the market

Back

Price war