cartel
a group of producers who collude to restrict output, maintain high prices, and maximize their joint profit
concentration ratio
the percentage of market share controlled by a given number of firms
duopoly
an oligopoly in which only two large firms dominate the market
monopolistic competition
a market structure in which many firms, each with a low degree of market power, produce similar but differentiated products
oligopoly
a market structure of imperfect competition in which a few large firms, each with a degree of market power, sell either standardized products or differentiated products
price war
a competition in which one firm lowers its prices to undercut the other firm and thereby steal its business; then, in response, the other firm lowers its prices even more, and so on
product differentiation
the creation of distinguishing characteristics for a product so that competing products are not regarded as perfect substitutes for each other
quota
the maximum amount of a good that can be imported by law
tariff
a fee exacted from the importing of a good