Ch. 4-7

Number of sellers in a pure economy

1,000's

Advertising in an oligopoly

A great deal

Advertising in a monopolistic economy

A lot

There are numerous federal ____ that are responsible for ensuring public ____

Agencies and safety

Examples of a pure economy

Agriculture

Entirety of output or production by a firm

Average revenue

Median price of a unit of output

Average revenue

Type of product in an oligopoly

Both

Consumer demand for different amounts at every price, causing the demand curve to shift to the left or the right

Change in demand

Movement along the demand curve showing that a different quantity is purchased in response to a change in price

Change in quantity demanded

The different amounts offered for sale at each possible price in the market

Change in supply

Lack of _____ lowers a business's incentives to use _____ more efficiently

Competition and resources

In the late 1800s _____ was threatened by the growing use of monopolies and _____

Competition and trusts

Products related in such a way that an increase in the price of one reduces the demand for the other

Complements

Control over price in a monopoly

Considerable

Combination of desire, ability, and willingness to buy a product

Demand

Graph showing the quantity demanded at each and every possible price that might prevail in the market at a given time

Demand curve

The extent to which a change in price causes a change in the quantity demanded

Demand elasticity

Type of products in a monopolistic economy

Differentiated

Price ___ involves selling the same product to different ____ at different prices

Discrimination and customers

Number of sellers of a monopolistic economy

Dozens

Ease of entry/ exit in a pure economy

Easy

Ease of entry/exit in a monopolistic economy

Easy

The pollution of underground drinking water is one type of negative _____ that harms an ____ third party, or those that use drinking water

Externality and uninvolved

Number of sellers in an oligopoly

Few

Type of product in a pure economy

Homogenous

Resource ____ is a situation in which necessary inputs do not move to market where they would earn ______ returns

Immobility and higher

Ease of entry/exit in a monopoly

Impossible

Type of elasticity in which the percentage change in the independent variable (usually price) causes a less than proportionate change in the dependent variable (usually quantity demanded or supplied)

Inelastic

All participants in the economy must have adequate _____ in order for the market to Function _____

Information and properly

Control over price in an oligopoly

Interrelated

Rule stating that more will be demanded at lower prices and less at higher prices

Law of demand

Principle that more will be offered for sale at higher prices than at lower prices

Law of supply

Example of a monopoly

Local utilities

Extra expense created by producing one additional unit of production

Marginal cost

Satisfaction or usefulness obtained from acquiring one more unit of a product

Marginal utility

Among the first laws passed to regulate business were intended to break up "evil" _____ and protect the rights of the _____

Monopolies and workers

Advertising in a monopoly

Mostly public relation

Advertising in a pure economy

None

Control over price in a pure economy

None

Number of sellers in a monopoly

One

Graph showing how a change in the amount of a single variable input affects total output

Production function

Government must produce sufficient and viable _____ goods because private business cannot _____ by providing them

Public and profit

Amount offered for sale at a given price; point on the supply curve

Quantity supplied

Examples of a monopolistic economy

Retail

The ______ act was the first significant law against monopolies

Sherman

Control over price in a monopolistic economy

Some

When businesses do not account for negative ____ effects, these unintended consequences may result in huge losses and even market ____

Spillover and price

Examples of an oligopoly

Steel, auto

Government payment to encourage or protect a certain economic activity

Subsidy

The portion of a change in quantity demanded caused by a change in price that makes other products more or less costly

Substitution effect

A chart showing the quantities offered for sale at each possible price in the market

Supply schedule

In a free market economy, if the government ______ firms with negative spillovers, such as pollution, that adds to the cost of the firm's products and makes it less _____

Taxes and profitable

In order to ensure _____ the government may require businesses to _____ information about its product of its operations to the public

Transparency and disclose

Type of product in a monopoly

Unique

Ease of entry/exit in an oligopoly

Very hard

____ is a way for governments to control land use

Zoning

Business conducted over the internet

e-commerce