Economics, 3rd Edition

compensating differential 

a difference in wages that arises 

to offset the non-monetary characteristics of different jobs

competitive advantage 

the advantages firms can gain over 

another which have the characteristics of being both distinctive 

and defensible

competitive market 

a market in which there are many buyers 

and sellers so that each has a negligible impact on the market 

price

complements 

two goods for which an increase in the price of 

one leads to a decrease in the demand for the other

compounding 

the accumulation of a sum of money in, say, a 

bank account, where the interest earned remains in the account 

to earn additional interest in the future