Market Terms and Definitions

Market Terms and Definitions

• Brand equity refers to the value of a brand's reputation.
• Brand Myopic describes a short-term marketing focus.
• Comparative advertising involves comparing products with those of competitors.
• Cost complementarities signify cost savings resulting from joint production.
• Deadweight loss of monopoly is economic inefficiency caused by high prices.
• Diseconomies of scale are rising costs due to inefficiency.
• Economies of scale means cost savings from mass production.
• Economies of scope involve cost savings from producing multiple products.
• Firm demand curve illustrates the relationship between price and quantity demanded.
• Free entry describes a market with no barriers to starting a business.
• Free exit describes a market without restrictions on leaving.
• Green marketing refers to eco-friendly business strategies.
• Inverse demand function defines price based on the quantity demanded.
• Linear inverse demand function means a constant rate of price change.
• Marginal revenue is the additional revenue from selling one more unit.
• Monopolistic competition involves many firms with differentiated products.
• Monopoly involves a single seller with market control.
• Multiplant monopoly is a monopoly operating in multiple locations.
• Niche marketing involves targeting a specific customer segment.
• Patents provide legal protection for inventions.
• Perfectly competitive market means many firms selling identical products.
• Product differentiation involves making products unique from those of competitors.
• Market structure classifies the levels of competition within an industry.
• Price discrimination means charging different prices for the same product.
• Oligopoly is when a few large firms dominate the market.
• Game theory is strategic decision-making among competitors.
• Barriers to entry are obstacles preventing new firms from entering a market.
• Price elasticity of demand is the sensitivity of demand to price changes.
• Supply curve illustrates the relationship between price and quantity supplied.
• Marginal cost is the additional cost of producing one more unit.
• Fixed costs are costs that do not change with the output level.
• Variable costs are costs that vary with production levels.
• Total revenue is the overall income from sales.
• Profit maximization is setting output where marginal cost equals marginal revenue.
• Short run is a period with fixed inputs and limited flexibility.
• Long run is a period where all inputs are variable.
• Shutdown rule states that a firm stops operations if the price is below average variable cost.
• Consumer surplus is the difference between willingness to pay and the actual price paid.
• Producer surplus is the difference between price received and the minimum acceptable price.
• Market failure is an inefficient allocation of resources in a market.