chapter 7

2. an illegal agreement among firms to divide the market set prices or limit production
5. price competition a way to attract customers through style or services or location no lower price
6. A product such as petroleum or milk that is considered the same no matter who produces out of the market
7. monopoly a market that runs most efficiently when one large firm supplies all the output
9. a formal organization of producers that agree to coordinate prices and production
13. a contract that gives a single firm the right to sell its goods within an exclusive market
14. discrimination the division of consumers into groups based on how much they pay for a good
15. up cost the expenses a new business must play before it can begin to produce and sell goods
16. pricing selling a product below cost for a short period of time to drive competitors out of the market
17. of scale factors that cause a producers average cost per until to fall as output rises

1. the removal of government controls over a market
3. competition a market structure in which many companies sell products that are similar but not identical
4. a market structure in which a few large firms dominate the market
8. laws laws that encourage competition in the marketplace
10. to entry any factor that makes it difficult for a new firm to enter a market
11. war a series of competitive price cuts that lowers the market place below the the cost of production
12. when two or more companies join to form a single firm
16. a license that gives the inventor of a new product the exclusive right to sell it for a specific period of time