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Shortage
Quantity supplied is less than quantity demanded
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Price floor
Lowest legal price that can be CHARGED for a product
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Product differentiation
Differences between competing products in same industry
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Minimum wage
Lowest legal wage that can be paid to most workers
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Market structure
Nature and degree of competition among firms operating in same industry
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Price-fixing
Agreement, usually illegal, by firms to charge a uniform price for a product
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Laissez-faire
Philosophy that government should not interfere with commerce or trade
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Monopolistic competition
Market structure having all conditions of pure competition except for identical products
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Economies of scale
Increasingly efficient use of personnel, plant, and equipment as a firm becomes larger
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Imperfect competition
Lacks one or more conditions of perfect competition
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Collusion
Formal agreement to set prices or cooperate
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Government monopoly
Government owned monopoly
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Oligopoly
Few large sellers dominatethe industry
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Natural monopoly
Market where average costs are lowest when all output is produced by a single firm
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Trust
illegal combination of corporations or companies organized to hinder competition
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Monopoly
Only one seller of a particular product
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Technological monopoly
Market situation where a firm has a monopoly because it owns or controls a manufaturing method, process, or other scientific advance
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Public Disclosure
Requirement forcing a business to reveal infornation about its products or its operations to the public
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Geographic monopoly
Monopoly based on absence of other sellers in a certain geographic area
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Externality
economic side effect that affects an uninvolved third party
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Price Discrimination
Illegal practice of charging customers different prices for same product
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Market Failure
Market where any of requirements of a competitive market are lacking
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Public Goods
Economic product that is consumed collectively; highways, national defense, police and fire protection
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Cease and desist order
Ruling requiring a company to stop an unfair business practice that reduces or limits competition
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