9.5: Key Terms
- Page ID
- 215649
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\(\newcommand{\avec}{\mathbf a}\) \(\newcommand{\bvec}{\mathbf b}\) \(\newcommand{\cvec}{\mathbf c}\) \(\newcommand{\dvec}{\mathbf d}\) \(\newcommand{\dtil}{\widetilde{\mathbf d}}\) \(\newcommand{\evec}{\mathbf e}\) \(\newcommand{\fvec}{\mathbf f}\) \(\newcommand{\nvec}{\mathbf n}\) \(\newcommand{\pvec}{\mathbf p}\) \(\newcommand{\qvec}{\mathbf q}\) \(\newcommand{\svec}{\mathbf s}\) \(\newcommand{\tvec}{\mathbf t}\) \(\newcommand{\uvec}{\mathbf u}\) \(\newcommand{\vvec}{\mathbf v}\) \(\newcommand{\wvec}{\mathbf w}\) \(\newcommand{\xvec}{\mathbf x}\) \(\newcommand{\yvec}{\mathbf y}\) \(\newcommand{\zvec}{\mathbf z}\) \(\newcommand{\rvec}{\mathbf r}\) \(\newcommand{\mvec}{\mathbf m}\) \(\newcommand{\zerovec}{\mathbf 0}\) \(\newcommand{\onevec}{\mathbf 1}\) \(\newcommand{\real}{\mathbb R}\) \(\newcommand{\twovec}[2]{\left[\begin{array}{r}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\ctwovec}[2]{\left[\begin{array}{c}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\threevec}[3]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\cthreevec}[3]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\fourvec}[4]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\cfourvec}[4]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\fivevec}[5]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\cfivevec}[5]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\mattwo}[4]{\left[\begin{array}{rr}#1 \amp #2 \\ #3 \amp #4 \\ \end{array}\right]}\) \(\newcommand{\laspan}[1]{\text{Span}\{#1\}}\) \(\newcommand{\bcal}{\cal B}\) \(\newcommand{\ccal}{\cal C}\) \(\newcommand{\scal}{\cal S}\) \(\newcommand{\wcal}{\cal W}\) \(\newcommand{\ecal}{\cal E}\) \(\newcommand{\coords}[2]{\left\{#1\right\}_{#2}}\) \(\newcommand{\gray}[1]{\color{gray}{#1}}\) \(\newcommand{\lgray}[1]{\color{lightgray}{#1}}\) \(\newcommand{\rank}{\operatorname{rank}}\) \(\newcommand{\row}{\text{Row}}\) \(\newcommand{\col}{\text{Col}}\) \(\renewcommand{\row}{\text{Row}}\) \(\newcommand{\nul}{\text{Nul}}\) \(\newcommand{\var}{\text{Var}}\) \(\newcommand{\corr}{\text{corr}}\) \(\newcommand{\len}[1]{\left|#1\right|}\) \(\newcommand{\bbar}{\overline{\bvec}}\) \(\newcommand{\bhat}{\widehat{\bvec}}\) \(\newcommand{\bperp}{\bvec^\perp}\) \(\newcommand{\xhat}{\widehat{\xvec}}\) \(\newcommand{\vhat}{\widehat{\vvec}}\) \(\newcommand{\uhat}{\widehat{\uvec}}\) \(\newcommand{\what}{\widehat{\wvec}}\) \(\newcommand{\Sighat}{\widehat{\Sigma}}\) \(\newcommand{\lt}{<}\) \(\newcommand{\gt}{>}\) \(\newcommand{\amp}{&}\) \(\definecolor{fillinmathshade}{gray}{0.9}\)| Words (or words that have the same definition) | The definition is case sensitive | (Optional) Image to display with the definition [Not displayed in Glossary, only in pop-up on pages] | (Optional) Caption for Image | (Optional) External or Internal Link | (Optional) Source for Definition |
|---|---|---|---|---|---|
| (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 |
|---|---|---|---|---|---|
| allocative efficiency | producing the optimal quantity of some output; the quantity where the marginal benefit to society of one more unit just equals the marginal cost | ||||
| barriers to entry | the legal, technological, or market forces that may discourage or prevent potential competitors from entering a market | ||||
| copyright | a form of legal protection to prevent copying, for commercial purposes, original works of authorship, including books and music | ||||
| deregulation | removing government controls over setting prices and quantities in certain industries | ||||
| intellectual property | the body of law including patents, trademarks, copyrights, and trade secret law that protect the right of inventors to produce and sell their inventions | ||||
| legal monopoly | legal prohibitions against competition, such as regulated monopolies and intellectual property protection | ||||
| marginal profit | profit of one more unit of output, computed as marginal revenue minus marginal cost | ||||
| monopoly | a situation in which one firm produces all of the output in a market | ||||
| natural monopoly | economic conditions in the industry, for example, economies of scale or control of a critical resource, that limit effective competition | ||||
| patent | a government rule that gives the inventor the exclusive legal right to make, use, or sell the invention for a limited time | ||||
| predatory pricing | when an existing firm uses sharp but temporary price cuts to discourage new competition | ||||
| trade secrets | methods of production kept secret by the producing firm | ||||
| trademark | an identifying symbol or name for a particular good and can only be used by the firm that registered that trademark |
| Words (or words that have the same definition) | The definition is case sensitive | (Optional) Image to display with the definition [Not displayed in Glossary, only in pop-up on pages] | (Optional) Caption for Image | (Optional) External or Internal Link | (Optional) Source for Definition |
|---|---|---|---|---|---|
| (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 |