9.6.1: Key Terms
- Page ID
- 215671
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|---|---|---|---|---|---|
| (Eg. "Genetic, Hereditary, DNA ...") | (Eg. "Relating to genes or heredity") |  | The infamous double helix | https://bio.libretexts.org/ | CC-BY-SA; Delmar Larsen |
| Word(s) | Definition | Image | Caption | Link | Source |
|---|---|---|---|---|---|
| acquisition | when one firm purchases another | ||||
| antitrust laws | laws that give government the power to block certain mergers, and even in some cases to break up large firms into smaller ones | ||||
| bundling | a situation in which multiple products are sold as one | ||||
| concentration ratio | an early tool to measure the degree of monopoly power in an industry; measures what share of the total sales in the industry are accounted for by the largest firms, typically the top four to eight firms | ||||
| cost-plus regulation | when regulators permit a regulated firm to cover its costs and to make a normal level of profit | ||||
| exclusive dealing | an agreement that a dealer will sell only products from one manufacturer | ||||
| four-firm concentration ratio | the percentage of the total sales in the industry that are accounted for by the largest four firms | ||||
| Herfindahl-Hirschman Index, HHI | approach to measuring market concentration by adding the square of the market share of each firm in the industry | ||||
| market share | the percentage of total sales in the market | ||||
| merger | when two formerly separate firms combine to become a single firm | ||||
| minimum resale price maintenance agreement | an agreement that requires a dealer who buys from a manufacturer to sell for at least a certain minimum price | ||||
| price cap regulation | when the regulator sets a price that a firm cannot exceed over the next few years | ||||
| regulatory capture | when the supposedly regulated firms end up playing a large role in setting the regulations that they will follow and as a result, they “capture” the people usually through the promise of a job in that “regulated” industry once their term in government has ended | ||||
| restrictive practices | practices that reduce competition but that do not involve outright agreements between firms to raise prices or to reduce the quantity produced | ||||
| tying sales | a situation where a customer is allowed to buy one product only if the customer also buys another product |