(See related pages)
Below are the key terms featured in this chapter. The textbook's full glossary is also available for online searching.
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| accounting-profit rate | a measure of a business's profitability, calculated as its accounting profit divided by owner's equity (See page(s) 137) |
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| anti-combines legislation | laws aimed at preventing industrial concentration and abuses of market power (See page(s) 143) |
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| average-cost pricing | the practice of setting price where it equals average cost (See page(s) 137) |
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| cartel | a union of oligopolists who have a formal market-sharing agreement (See page(s) 132) |
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| collusion | oligopolists acting together as if they are a monopoly (See page(s) 132) |
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| concentration ratio | the percentage of total sales revenue earned by the largest businesses in a market (See page(s) 147) |
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| conglomerate merger | a combination of businesses in unrelated industries (See page(s) 144) |
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| fair rate of return | the maximum accounting-profit rate allowed for a regulated monopoly (See page(s) 137) |
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| horizontal merger | a combination of former rivals (See page(s) 144) |
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| industrial concentration | market domination by one or a few large businesses (See page(s) 148) |
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| kinked demand curve | a demand curve with two segments, one fairly flat and one steep, that is typical of rival oligopolists (See page(s) 131) |
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| market share | a business's proportion of total market sales (See page(s) 131) |
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| mutual interdependence | the relationship between oligopolists, in which the actions of each business affect the other businesses (See page(s) 130) |
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| nonprice competition | efforts to increase demand through product differentiation, advertising, or both (See page(s) 146) |
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| price leadership | an understanding among oligopolists that one business will initiate all price changes in the market and the others will follow by adjusting their prices and output accordingly (See page(s) 132) |
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| product differentiation | efforts to make a product distinct from that of competitors (See page(s) 146) |
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| vertical merger | a combination of a business and its supplier (See page(s) 144) |