Econ Unit 2: Week 1 Key Terms

1. A market structure where many companies are selling identical products.

• Monopoly

• 1. Perfect competition

• 1. Oligopoly

• 1. Monopolistic competition

1. Factors that make it difficult for new companies to enter a market.

• 1. Economies of scale

• 1. Collusion

• 1. Barriers to entry

• 1. Market power

1. The total amount of goods and services in the economy available at all possible price levels

• 1. Aggregate supply

• 1. Aggregate demand

• 1. Nominal GDP

• 1. Real GDP

1. The ability to control prices and total market output.

• 1. Monopoly

• 1. Start-up costs

• 1. Economies of scale

• 1. Market power

1. A market structure where only one company is selling the product, and this company faces no competition.

• Monopoly

• 1. Perfect competition

• Oligopoly

• 1. Monopolistic competition

1. Characteristics that cause the producer’s average cost to drop as production rises.

• 1. Start-up costs

• 1. Economies of scale

• 1. Market power

• Merger

1. Gross domestic product (GDP) measured in current prices.

• 1. Real GDP

• 1. Aggregate demand

• 1. Nominal GDP

• 1. Aggregate supply

1. An agreement among members of an oligopoly to set prices and production levels.

• Merger

• Collusion

• 1. Economies of scale

• 1. Barriers to entry

1. A market structure where many companies compete in an open market to sell products that are similar but not identical.

• Monopoly

• 1. Perfect competition

• Oligopoly

• 1. Monopolistic competition

1. The amount of goods and services in the economy that will be purchased at all possible price levels.

• 1. Aggregate supply

• 1. Aggregate demand

• 1. Nominal GDP

• 1. Real GDP