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Cards In This Set
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What is perfect competition?
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An ideal market structure buyers and sellers compete fully under the laws of supply and demand. (fruit)
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What is a monopolistic competition?
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Same as perfect competition, except sellers offer similar, instead of identical products. (coke)
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What is an oligopoly?
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Exists when a few large sellers control most of the market (possible 70%) (Cereal)
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What is a monopoly?
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When a single seller controls the entire market. (electronic)
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What is a natural monopoly?
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This is where competition is naturally inconvenient of impractical. (railroads)
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What is geographic monopoly?
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When the potential for profit is limited by location (Jimmy Jim's antique store)
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What is a technological monopoly?
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When a producer develops new technology that enables the creation of a new product. (
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What is a government monopoly?
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Any product where the government is sole seller of a product.
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What is a price leadership? (oligopoly)
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Part of interdependent pricing. One company will raise the price and hope the others follow.
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What is price war? (oligopoly)
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If the other companies do not raise prices a war could be set off where each company undercuts each other.
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What is a collusion (oligopoly)
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The illegal act of secret agreements between companies to set production levels, and price.
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What is a cartel? (oligopoly)
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Illegal in the U.S., this is where companies openly organize price levels and market sharing.
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