chapter 7

3. two or more companies join to form a single firm.
4. Discrimination:the divison of consumers into groups based on how much they will pay for good.
8. Trust Laws:laws that encourage competition in the marketplace.
10. of Scale: factors that cause a producer's average cost per unit to fall as output rises.
13. cost:the expenses a new business must pay before it can begin to produce and sell goods.
14. illegal agreement among firms to divide the market,set prices,or limit production.
15. formal organization of producers that agree to coordinate prices and production.
17. market structure where a few large firms dominate a market.

1. to Entry:any factor that makes it difficult for a new firm to enter a market.
2. the removal of government controls over a market.
4. Pricing:selling a product below cost for a short period of time to drive competitors out of the market.
5. Competition:a market structure in which many companies sell products that are similar but not identical.
6. contract that gives a single firm the right to sell its goods within an exclusive market.
7. War:a series of competitive price cuts that lowers the market price below the cost of production.
9. Monopoly:a market that runs most efficiently when one large firm supplies all of the output
11. product such as petroleum or milk that is considered the same no matter who produces or sells it.
12. license that gives the inventor of a new product the exclusive right to sell it for a specific period of time.
16. Competition:a way to attract customers through style,service,or location,but not a lower price.