Economics Terms: Market Power, Regulation, Antitrust Policy, and Competition, Quizzes of Microeconomics

Download Economics Terms: Market Power, Regulation, Antitrust Policy, and Competition and more Quizzes Microeconomics in PDF only on Docsity! TERM 1 market power DEFINITION 1 ability of firm to raise price without losing all sales to rivals downward sloping demand curve has some control over price TERM 2 Social Regulation DEFINITION 2 gov't regulation aimed at improving health and safety example: health care reform TERM 3 Economic Regulation DEFINITION 3 gov't regulation of natural monopoly b/c of economies of scale average production cost is lowest when single firm supplies the market control price, output, entry of new firms, quality of service in monopolies electricity, phone, subway, land, air TERM 4 antitrust policy DEFINITION 4 gov't regulation at preventing monopoly and fostering competition in markets where competition is desirable TERM 5 Public utilities DEFINITION 5 gov't owned/regulated utilities TERM 6 Capture theory of regulation DEFINITION 6 producer's political power and strong stake in regulatory outcome lead them to capture regulating agency and prevail on it to serve producer interests TERM 7 trust DEFINITION 7 firm that tries to monopolize a market TERM 8 consent decree DEFINITION 8 agree not to do what they had been charged with TERM 9 per se illegal DEFINITION 9 business practices deemed illegal regardless of their economic rationale or their consequences TERM 10 horizontal merger DEFINITION 10 one firmcombineswith another that produces same type of product