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| Question | Answer |
| Market structure | An economic model of competition among businesses in the same industry. |
| Cartel | A group that acts together to set prices and limit output. |
| Price maker | A firm that does not have to consider competitors when setting the price of its products. |
| Price taker | A business that accepts the market price determined by supply and demand. |
| Imperfect competition | Occurs in markets that have few sellers or products that are not standardized. |
| Natural monopoly | Occurs when the costs of production are lowest with only one producer. |
| Government monopoly | When the government either owns or authorizes only one producer, like the post office. |
| Technological monopoly | Occurs when a firm controls a manufacturing method, invention, or type of technology, like the polaroid instant camera. |
| Geographic monopoly | Exists when there are no other producers within a certain region, like E.W.James. |
| Merger | The joining of two firms to form a single firm. |
| Economies of Scale | This occurs when the average cost of production falls as the producer grows larger. |
| Patent | Gives an inventor the exclusive property rights to an invention or process for a certain number of years. |
| Focus group | A moderated discussion with small groups of consumers. |
| Sherman Antitrust Act | Passed in 1890, it gave the government power to control monopolies. |
| Price fixing | Occurs when businesses agree to set prices for competing products. |
| Market allocation | Occurs when competing businesses divide a market amongst themselves. |
| Predatory pricing | Occurs when businesses set prices below cost for a time to drive competitors out of a market. |
| Public disclosure | Policy that requires businesses to reveal product information. |
| Deregulation | Reduces or removes government control of business. |
| Perfectly Competitive Market | This market has many buyers and sellers but it's not fast food. |
| Perfectly Competitive Market | In this market, the market price and equilibrium price are the same. |
| Perfectly Competitive Market | This market produces a VERY standardized product. |
| Perfectly Competitive Market | Examples of products in this type of market are wheat, corn, and beef. |
| Monopolistic Market | Only one seller in this type of market. |
| Monopolistic Market | The is a very restricted, regulated market structure. |
| Monopolistic Market | This market is a price maker because there are no substitutes. |
| Monopolistic Competition | Many sellers and many buyers, such as the fast food market. |
| Monopolistic Competition | Limited control of prices in this market structure because no one would probably pay $20 for a hamburger! |
| Monopolistic Competition | There are lots of nonprice competition in this market structure. |
| Oligopoly | There are few sellers and many buyers in this market structure. |
| Oligopoly | Examples of products in this market structure include steel, cement, cereal and sodas. |