Chapter 7

5. When two or more companies join to form a single firm.
6. Selling a product below cost for a short period of time to drive competitors out of the market.
8. The removal of government controls over a market.
10. Factors that cause a producer's average cost per unit to fall as output rises.
13. Laws that encourage competition in the market place.
14. A way to attract customers through style, service, or location, but not a lower price.
16. An illegal agreement among firms to divide the market, set prices, or limit production.
17. A market structure in which a few large firms dominate a market.

1. A series of competitive price cut that lowers the market price below the cost of production.
2. A contract that gives a single firm the right to sell its goods within an exclusive market.
3. Any factor that makes it difficult for a new firm t enter a market.
4. The division of consumers into groups based on how much they will pay for a good.
7. A market structure in which many companies sell products that are similar but no identical.
9. A market that runs most efficiently when one large firm supplies all of the output
11. The expenses a new business must pay before it can begin to produce and sell goods.
12. A product such as petroleum or milk that is considered the same no matter who produces or sells it.
15. A license that gives the inventor of a new product the exclusive right to sell it for a specific period of time.
16. A formal organization of producers that agree to coordinate prices and production.