ch 7 vocab

3. a series of competitive price cuts that lowers the market price below the cost of production
5. a way to attract customer through style, service, or location, but not a lower price
7. the expenses a firm must pay before it can begin to produce and sell goods
9. a market structure in which a few large firms dominate a market
15. division of customers into groups based on how much they will pay for a good
16. combination of two or more companies into a single firm
17. Factors that cause a producer's average cost per unit to fall as output rises.
18. laws that encourage competition in the marketplace.

1. any factor that makes it difficult for a new firm to enter a market
2. factors that cause a producers' average cost per unit to fall as output rises
4. the removal of some government control over a market
6. a market that runs most efficiently when one large firm supplies all of the output
8. selling a product below cost to drive competitors out of the market
10. a formal organization of producers that agree to coordinate prices and production
11. A market structure characterized by Free entry Many different firms Product differentiation
12. A license that gives the inventor of a new product the exclusive right to sell it for a certain period of time.
13. the right to sell a good or service within an exclusive market
14. a product that is the same no matter who produces it, such as petroleum, notebook paper, or milk