Chapter 6

3. An illegal agreement among firms to divide the market, set prices, or limit production.
6. A contract that gives a single firm the right to sell its goods within an exclusive market.
7. A product such as petroleum or milk that is considered the same no matter who produces or sells it.
8. When two or more companies join to form a single firm.
10. A license that gives an inventor of a new product the exclusive right to sell it for a specific period of time.
13. A market structure in which many companies sell products that are similar but not identical.
16. Factors that causes producers average cost per unit to fall as output rises.
17. The expenses a new business must pay before it can begin to produce and sell goods.
18. A market structure in which a few large firms dominate a market.

1. Any factor that makes it difficult for a new firm to enter a market.
2. A way to attract customers through style, service,or location, but not a lower price.
4. A formal organization of producers that agree to coordinate prices and production.
5. The removal of government controls over a market.
9. Laws that encourage competition in the marketplace.
11. A series of competitive price cuts that lowers the market price below the cost of production.
12. The division of Consumers into groups based on how much they will pay for a good.
14. Selling a product below costs for a short period of time to drive competition out of the market.
15. A market that runs most efficiently when one large firm supplies all of the output.