Chapter 4 Vocab

3. dividing consumers into two or more groups and charging a different price to each group
4. a market that runs most efficiently when one large firm provides all of the output
5. agreement by a formal organization of producers to coordinate prices and production
8. to entry factors that make it difficult for new firms to enter a market
9. when a company joins with another company or companies to form a single firm
10. the expenses that a new business must pay before it can begin to produce and sell goods
14. an agreement among members of an oligopoly to illegally set prices and production levels
15. companies compete in an open market to sell products that are identical
21. a product that is considered the same regardless of who makes or sells it
22. also called perfect competition, is the simples market structure
23. a market structure that fails to meet the conditions of pure competition
24. enables a monopolistically competitive seller to profit from the differences between his or her products nadandmpetitiors' products
25. gives a company exclusive rights to sell a new good or service for a specific period of time

1. the ability to control prices and total market output
2. competitors cut their prices very low to win business
4. competition through ways other than lower prices
6. the government no longer decides what role each company can play in a market and how much it can charge its customers
7. government policies that keep firms from controlling price and supply of important goods
11. a contract issued by a local authority that gives a single firm the right to sell its goods within an exclusive market
12. a monopoly created by the government
13. characteristics that cause a producer's average cost to drop as production rises
16. a business combination similar to a cartel
17. agreement among firms to sell at the same or very similar prices
18. a market dominated by a few large, profitable firms
19. forms when barriers prevent firms from entering a market that has a single supplier
20. grants firms the right to operate a business