Econ. CH. 7.1 Word Scramble

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Term	Definition
Market Structure	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.
Pure Competition	A theoretical market structure that requires three major conditions: very large numbers of buyers and sellers identical products, and freedom of entry and exit.
Industry	Group of firms producing similar or identical products
Perfect Competition	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.
Monopolistic Competition	Market structure having all conditions of pure competition expect for identical products; a form of imperfect competition
Product Differentiation	Real or imagined difference between competing products in the same industry
Non-price competition	Competition based on a product's appearance, quality, or design, rather than its price
Oliogopoly	Market structure in which a few large sellers dominate the market and have the ability t affect prices in the industry; form of imperfect competition
Collusion	Illegal agreement among producers to fix prices, limit output, divide markets, or otherwise agree to reduce competition
Price-fixing	Illegal agreement by firms to charge a uniform price for a product
Monopoly	Market structure characterized by a single producer; form of imperfect condition
Laissez-faire	Philosophy that government should not interfere with business activity
Natural Monopoly	Market structure in which average costs of producing are lowest when all output is produced by a single firm
Geographic Monopoly	Market structure in which a firm has a monopoly because of its location or the small size of the market
Technological Monopoly	Market structure in which a firm has a monopoly because it owns or controls a manufacturing method, process, or other scientific advantage
Government Monopoly	Monopoly created and/or owned by the government

Created by: snufkin