Chapter 7 Vocab

2. competition a market structure in which many companies sell products that one similar but hot identical.
4. piserimination the division of consumers into groups based on how much they will pay for a good.
8. when two or more companies join a firm.
9. an illegal agreement among firms to divide the market, set prices, of limit productions.
11. Pricing selling a product below cost for a short period of time to drive competitors out of the market.
14. a contract that gives a single firm the right to sell its goods within an exclusive market.
16. a license that gives the inventor of a new product the exclusive right to sell it for a specific period of time.
18. up cost the expenses a new business must pay before it can begin to produce and sell goods.

1. week a series of competitive price outs that lowers the market price below the cost of production.
3. competition a way to attract customers through style, service, or location, but not a lower price.
5. the removal of gov controls over a market.
6. of scale factors that cause a producers average cost per unit to fall as output rises.
7. laws that encourage competition in a market place
10. to entry any factor that makes it difficult for a new firm to enter a market.
12. a market structure in which a few large firms dominate a market.
13. a formal organization of producers that agree to coordinate prices and production.
15. monopoly a market that runs most efficiently when one large firm supplies all of the output.
17. commodity a product such as petroleum or milk that is considered the same no matter who produces or sells it.