Market Structures 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 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 except for identical products; a form of imperfect competition |
| product differentiation | real or imagined differences between competing products in the same industry |
| nonprice competition | competition based on a product’s appearance, quality, or design, rather than its price |
| oligopoly | market structure in which a few large sellers dominate and have the ability to affect prices in the industry; form of imperfect competition |
| collusion | illegal agreement among producers to fix prices, limit output, or divide markets |
| 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 competition |
| laissez-faire | philosophy that government should not interfere with business activity |
| natural monopoly | market structure in which average costs of production 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 |
| market failure | condition where any of the requirements for a competitive market leads to an inefficient allocation of resources characterized by too much or too little being produced |
| public good | economic products that are paid for and consumed collectively; such as highways, national defense, police and fire protection |
| spillover effect | uncompensated side effects that either benefit or harm a third party not involved in the activity that caused it |
| externalities | uncompensated side effects that affect an uninvolved third party |
| cost-benefit analysis | calculation that compares the cost of an action to its benefits |
| trusts | illegal combination of corporations or companies organized to suppress competition |
| price discrimination | practice of charging different customers different prices for the same product |
| cease and desist orde | r ruling requiring a company to stop an unfair business practice that reduces or limits competition |
| public disclosure | requirement forcing a business to reveal information about its products or its operations to the public |
| mortgage | legal document that pledges ownership of a home to a lender as security for repayment of borrowed money |
| foreclosure | process in which a lender reclaims the property due to a lack of payment by the borrower |
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sfoston
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