Chapter 7 vocab

2. a formal organization of producers that agree to coordinate prices and production
3. a series of competitive price cuts that lowers the market price below the cost of production
5. any factor that makes it difficult for a new firm to enter the market
7. division of consumers into groups based on how much they will pay for a good
9. a market structure in which many companies sell products that are similar but not identical
12. a market that runs most efficiently when one large firm supplies all of the output
13. the expenses a new business must pay before it can begin to produce and sell goods
14. a contract that gives a single firm the right to sell its goods within an exclusive market
16. an illegal agreement among firms to divide the market, set prices, or limit production
17. License that gives the inventor of a new product the exclusive right to sell it for a certain period of time
18. factors that cause a producer's average cost per unit to fall as output rises

1. selling a product below cost for a short period of time to drive competitors out of market.
4. when two or more companies join to form a single firm
6. a product such as petroleum or milk that is considered the same no matter who produces or sells it.
8. a way to attract customers through style, service, or location, but not a lower price
10. Series of laws intended to promote abundant fair competition in the marketplace
11. the removal of some government controls over a market
15. a market structure in which a few large firms dominate a market