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Topic 4 Vocabulary

Even #'s

QuestionAnswer
commodity a product such as petroleum or milk that is considered the same no matter who produces or sells it
imperfect competition a market structure that fails to meet the conditions of perfect competition
monopoly a market in which a single seller dominates
natural monopoly a market that runs most efficiently when one large firm supplies all of the output
franchise a contract that gives a single firm the right to sell its goods within an exclusive market
market power the ability of a company to control prices and total market output
differentiation making a product different from other, similar products
oligopoly a market structure in which a few large firms dominate a market
collusion an illegal agreement among firms to divide the market, set prices, or limit production
cartel a formal organization of producers that agree to coordinate prices and production
Created by: braxbryse
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