Ch.7

2. laws that encourage competition in the market place
3. the removal of government controls over a market
5. an illegal agreement among firms to divide the market set price or limit production
7. selling a product below cost for a short period of time to drive competitors out of the market
9. a license that gives the inventor of a new product the exclusive right to sell it for a specific period of time
11. a market structure in which many companies sell products that are similar but not identical
14. the division of consumers into groups based on how much they will pay for a good
15. a contract that gives a single firm that right to sell its goods within an exclusive market
16. a market that runs most efficienty when one large firm supplies all of the out put
17. a series of competitve price cuts that lowers the market price below the cost of production

1. the expenses a new business must pay before it can begin to produce and sell goods
4. a way to attract customers through style service or location but not a lower price
5. a formal organization of producers that agree to corndinate prices and production
6. when two or more companies join to form a single firm
8. factors that cause a producers average cost per unit to fall as output rise
10. a product such as petroleum or milk that is considered the same no matter who produces or sells it
12. any factor that makes it difficult for a new firm to enter a market
13. a market structure in which a few large firms domination a market