ch.7 vocab

4. pricing selling a product below cost for a short period of time
5. war a series of competitive price cuts that lower the market price below the cost of production
6. a market structure in witch a few large firms dominate a market
9. an illegal agreement among firms to divide the market set prices or limit production
10. to entry any factor that makes it difficult for a new firm to enter a market
12. a contract that gives a single firm the right to sell its good within an exclusive market
13. of sale factors that cause a producer average cost per unit to as output rises
16. price competition a way to attract costumers through style,service or location but not a lower price
17. a formal organization of producers that agree to coordinate prices and production

1. competition a market structure in witch many companies sell product that similar but not identical
2. a removal of government controls over a market
3. discrimination the division of consumers into groups based on how much they will pay for good
7. laws laws that can encourage competition in the market place
8. up cost the expense a new business must pay before it can begin to produce or sell goods
11. a license that gives the invert of a new product the exclusive right to sell it for a specific period of tome
14. monopoly a market that runs most efficiently when one large firm supplies all of the output
15. when two or more companies join to form a single firm
17. a product such as gas/milk that is considered the same no matter who producers or sells it