ch 7 vocab

2. an illegal agreement among firms to divide the market, set rices, or limit production
3. the expenses a new business must pay before it can begin to produce and sell goods
5. factors that cause a producers average cost per unit fall as output rises
7. a contract that gives a single firm the right to sell its good within an exclusive market
9. a market that runs most efficiently when one large firm supplies all of the output cost
12. any factor that makes it difficult for a new firm to enter a market
13. a product such as petroleum or milk that is considered the same no matter who produces or sells it
14. the division of consumers into group based on how much they will pay for a good
16. the removal of government controls over a market
18. a formal organization of products that agree to coordinate pries and production

1. 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 a market
6. selling a product below cost for a short period of time to drive competitors out of the market
8. a series of competitive price cut that lowers the market price below cost of production
10. laws that encourage competition in the market place
11. a license that gives the inventor of a new product the exclusive right to sell it for a specific period of time
15. When two or more companies join to form a single firm
17. a way to attract customers through style, service, or location but not a lower price