Ch 7 Market Structures

7. a way to attract customers through style, service or location, but not a lower price
9. the right to sell a good or service within an exclusive market
10. combination of two or more companies into a single firm
15. a market dominated by a single seller
16. making a product different from other similar products
18. a market structure in which many companies sell products that are similar but not identical
21. a series of competitive price cuts that lowers the market price below the cost of production
22. an agreement among firms to divide the market set prices, or limit production
23. a government issued right to operate a business

1. the removal of some government controls over a market
2. an agreement among firms to charge one price for the same good
3. a monopoly created by the government
4. a market structure in which a few large firms dominate a market
5. division of customers into groups based on how much they will pay for a good
6. the ability of a company to change prices and output like a monopolist
8. a license that gives the inventor of a new product the exclusive right to sell it for a certain period of time
11. selling a product below cost to drive competitors out of the market
12. of scale factors that cause a producer's average cost per unit to fall as output rises
13. a market that runs most efficiently when one large firm supplies all of the output
14. laws that encourage competition in the marketplace
17. a formal organization of producers that agree to coordinate prices and production
19. a product that is the same no matter who produces it such as petroleum, notebook paper or milk
20. like a cartel, an illegal grouping of companies that discourages competition