Competition and Monopolies

Section 1 Vocab
-Market structure: The amount of competition they face.
-Perfect competition: Market situation in which there are numerous buyers and sellers, and no single buyer or seller can affect price.

Conditions for perfect competition!

• Large Market.
• A nearly identical product. 
• Easy entry and exit.
• Easily obtainable info.
• Independence. 

Section 2 Vocab
-Monopoly: A single seller controls the supply of the good or service and thus determines its price.
-Barriers to entry: Obstacles that prevent others from entering the market.
-Economies of scale: Produce large amounts of their good or service at relatively low cost.
-Patent: Gives you the exclusive right to manufacture, rent, or sell your invention for a specified number of years.
-Monopolistic competition: Relatively large number of sellers offer similar but slightly different products or services.

Cont.. (Section 2 Vocab)
-Copyright: Protects art, literature, song lyrics, and other creative works for the life of the author plus 70 years.
-Oligopoly: Industry dominated by several suppliers who exercise some control over price.
-Product differentiation: Real of perceived differences in the good or service that make it more valuable in consumers' eyes.
-Cartel: Arrangement among groups of industrial businesses, often in different countries, to reduce international competition by controlling price, production, and the distribution of goods.

Monopoly, Oligopoly,

How would you compete in a monopoly?
Market situation in which a large number of seller offer similar but slightly different products and in which each has some control over price.
How would you compete in oligopoly? Advertising, lower whole sale rates, more product cartel.

Monopolistic: Numerous sellers, relatively easy entry, differentiated products, non price competition, some control over price.
Oligopoly: Domination by few sellers, barriers to entry, Identical of slightly different pro., non price competition, interdependence.

Section 3 Vocab
-Interlocking directorates: A board of directors, the majority of whose members also serve as the board of directors of a competing corporation.
-Antitrust legislation: Laws to prevent new monopolies or trusts from forming and to break up those that already exist.
-Merger: When two or more companies combine into one corporation.
-Conglomerate: A huge corporation involved in at least four or more unrelated businesses.
-Deregulated: government reduced regulations and control over business activity.

A merger is when 2 companies combine. It would help both stores get bigger profits.

Limited a number if very specific business practices that lessened competition substantially.

CBS Corporation
-CW Network
-Time Warner
-Showtime
-CBS radio