Chapter 12

3. an illegal groupping of companies that discourages competition.
7. when two or more companies join to form a single firm.
8. a way to attract customers through style, service, or location, but not a lower price.
9. a market structure in which a large number of firms all produce the same product, and no single seller controls supply or prices.
10. any market structure besides perfect competition.
11. a division of consumers into groups based on how much they will pay for a good.
12. laws that encourage competiton in the marketplace.
13. a market in which a single seller has control.
14. any factor that makes it difficult for a new firm to enter a market.
15. a product, such as petroleum or milk, that is considered the same no matter who produces or sells it.
16. a formal organization of producers that agree to coordinate prices and production.
18. an agreement amont firms to sell at the same or very similar prices.
19. an illegal agreement among firms to divide the market, set prices, or limit production.

1. making a product different from other, similar products.
2. the expenses a new business must pay before it can begin to produce or sell goods.
4. a monopoly created by the government.
5. the ability of a company to control prices and total market output.
6. that cause a producer's average cost per unit to fall as more units are produced.
11. selling a product below cost for a short period of time to drive competitors out of the market.
17. a market structure in which a few large firms dominate a market.