Chapter 7 Vocabulary (Economics)

4. a series of competitive price cuts that lowers the market price below the cost of production.
6. factors that cause a producer's average cost per unit to fall as output rises.
8. a contract that gives a single firm the right to sell its goods within an exclusive market.
9. the expenses a new business must pay before it can begin to produce and sell goods.
12. the removal of government controls over a market.
13. selling a product below cost for a short period of time to drive competitors out of the time.
16. laws that encourage competition in the market place.
17. an illegal agreement among firms to divide the market, set prices, or limit production.
18. a license that gives the inventor of a new product the exclusive right to sell it for a specific period of time.

1. any factor that makes it difficult for a new firm to enter a market.
2. the division of consumers into groups based on how much they will pay for a good.
3. when two or more companies join to form a single firm.
5. a market structure in which many companies sell products that are similar but not identical.
7. a market that runs most efficiently when one large firm supplies all of the output.
10. a product such as petroleum or milk that is considered the same no matter who produces or sells it.
11. a formal organization of producers that agree to coordinate prices and production.
14. a market structure in which a few large firms dominate a market.
15. a way to attract customers though style, service, or location, but not a lower price.