El diccionario de negocios

VOCABULARY.

Know-how: Is an expression used in the world of economy to indicate that an industry or a company had experience in their field and know to perform a task because they had carried a lot of time making it.

Concession: Grant of exclusive privileges (such as to be the only seller of a good or service) by a government authority or by the owner of a singular property.

Bid(Licitación): The bid is an invitation to different suppliers to provide a good or service to the bidder; Where the buyer (bidder) provides the basis for the participation.

Monopsony: Condition in which there is one consumer who has a monopoly which enables him to dictate prices and salary

Sunk Costs: A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business may face, such as inventory costs or R&D expenses, because it has already happened. Sunk costs are independent of any event that may occur in the future.

Perfect Competition: A market structure in which the following five criteria are met:

1) All firms sell an identical product;

2) All firms are price takers - they cannot control the market price of their product;

3) All firms have a relatively small market share;

4) Buyers have complete information about the product being sold and the prices charged by each firm; and

5) The industry is characterized by freedom of entry and exit.

Perfect competition is sometimes referred to as "pure competition".

Monopoly: A situation in which a single company or group owns all or nearly all of the market for a given type of product or service. By definition, monopoly is characterized by an absence of competition, which often results in high prices and inferior products.

Monopolistic: A type of competition within an industry where:

1. All firms produce similar yet not perfectly substitutable products.

2. All firms are able to enter the industry if the profits are attractive.

3. All firms are profit maximizers.

4. All firms have some market power, which means none are price takers.

Oligopoly: A situation in which a particular market is controlled by a small group of firms. An oligopoly is much like a monopoly, in which only one company exerts control over most of a market. In an oligopoly, there are at least two firms controlling the market.

Cartels: Cartels are agreements between most or all of the major

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