CP Economics Terms Flashcard 81-90

Front

Restrictions on the entry of new firms into an industry.

Back

Barrier to entry

Front

A market structure with low entry barriers and many firms selling products differentiated enough that each firm's demand curve slopes downward.

Back

Monopolistic competition

Front

A market structure with a small number of firms whose behavior is interdependent.

Back

Oligopoly

Front

A group of firms that agree to act as a single monopolist to increase the market price and maximize the group's profits.

Back

Cartel

Front

The joining of two or more firms to form a single firm.

Back

Merger

Front

A reduction in government control over prices and firm entry in previously regulated markets, such as airlines and trucking.

Back

Deregulation

Front

Money needed to start or expand a business

Back

Financial capital

Front

The simplest form of business organization; a firm that is owned and run by one person who sometimes hires other workers.

Back

Sole proprietorship

Front

The legal obligation to pay any debts of the business.

Back

Liability

Front

Two or more people agree to contribute resources to the business in return for a share of the profit.

Back

Partnership