Market Structures (Chapter 7)

1. consider the same regardless of who makes it or sells it
5. companies join with another company or companies to form a single firm
7. by government to give power to company monopoly
9. difference between perfect competition and monopolistic competition
14. power/ability to control prices and total market output
15. fixing/agreement between firms to sell at same or very similar price
17. when barriers prevent firms from entering a market that has single supplier
18. monopoly/market that runs most efficiently when one large firm provides all of the output
21. laws/trust are illegal
22. competition/barriers to entry can lead to it
24. by a formal organization of producers to coordinate prices and productions
25. by government, grants firms right to operate a business
26. competition/simplest market structure

1. between members of a oligopoly to set prices and production levels
2. discrimination/charge different prices to two different groups
3. of scale/firm's start-up cost are high, and its average cost fall for each additional unit it produces
4. competition/competition through ways other than lower prices
6. pricing/last practice
8. no longer decides what role each company plays in a market and how much it can charge customers
10. issued by a local authority that gives single firm the right to sell its good within an exclusive market
11. a market dominated by a few large, profitable firms
12. competition/many companies compete in an open market to sell products that are similar but not identically
13. monopoly/monopoly created by the government
16. combination close to cartel
19. cost/expenses that a new business must pay before the first product reaches the consumer
20. war/competitors lower their prices to win business
23. to entry/factors that make it difficult for new firms to enter a market