Principles of Economics 3e: Monopoly and Antitrust Policy

A set of vocabulary flashcards based on the principles of economics focusing on monopoly and antitrust policy.

Corporate Mergers

The process of combining two or more companies into a single entity, often to increase market power.

Market Share

The percentage of total sales in a market that is controlled by a particular firm.

4-Firm Concentration Ratio

A measure that calculates the total market share held by the four largest firms in an industry.

Herfindahl-Hirschman Index

A measure of market concentration calculated by summing the squares of the market shares of all firms in the market.

Natural Monopoly

A market structure where a single firm can provide the entire product or service at a lower cost than multiple firms.

Deregulation

The process of removing or reducing government rules that control how businesses can operate.

Regulatory Capture

A situation where regulatory agencies are dominated by the industries they are supposed to regulate.

Tying Sales

A sales tactic where customers must buy one product in order to purchase another product.

Exclusive Dealing

An agreement where a retailer or wholesaler is obliged to deal exclusively with a supplier.

Bundling

The practice of selling multiple products or services together as a single combined unit.