Chapter 7 Vocabulary

2. Factors that cause a producers average cost per unit to fall as output rises.
6. a formal organization of producers that agree to coordinate prices and production.
7. An illegal agreement among firms to divide the market,set prices,or limit production.
11. A market structure in which many companies sell products that are similar but not identical.
14. A way to attract customers through style,service, or location, but not a few large firms dominate a market.
15. A product such as petroleum or milk that is considered the same no matter who produces or sells it.
17. The removal of government controls over a market.
18. laws that encourage competition in the marketplace.

1. The division of consumers into groups based on how much they will pay for a good.
3. A market structure in which a few large firms dominate a market.
4. A market that runs most efficiently when one large firm supplies all the output.
5. Selling a product below cost for a short period of time to drive competitors out of the market
8. Any factory that makes it difficult for a new firm to enter a market.
9. A contract that gives a single firm the right to sell its goods within an exclusive market.
10. The expenses a new business must pay before it can begin to produce and sell goods.
12. A license that gives the inventor of a new product the exclusive right to sell it for a specific period of time.
13. A series of competitive price cuts lowers the market place below the cost of production.
16. When two or more companies join to form a single firm.