Economics Chapter 7 Vocab

5. when two or more companies join to form a single firm
6. selling a product below cost for a short period of time to drive competitors out of the market
8. the removal of government controls over a market
10. factors that cause a producer's average cost per unit to fall as output rises
13. laws that encourage competition in the marketplace
14. a way to attract customers through style, service, or location, but not a lower price
16. an illegal agreement among firms to divide the market, set prices, or limit production
17. a market structure in which a few large firms dominate a market

1. a series of competitive price-cuts that lowers the market price below the cost of production
2. a contract that gives a single firm the right to sell its goods within an exclusive market
3. any factor that makes it difficult for a new firm to enter a market
4. the division of consumers into groups based on how much they will pay for a good
7. a market structure in which many companies sell products that are similar but no identical
9. a market that runs most efficiently when one large firm supplies all the output
11. the expenses a new business must pay before it can begin to produce and sell goods
12. a product such as petroleum or milk that is considered the same no matter who produces or sells it
15. a license that fives the inventor of a new product the exclusive right to sell it for a specific period of time
16. a formal organization of producers that agree to coordinate prices and production