Chapter 6 & 7 Vocabulary

2. a sudden shortage of a good
5. a market structure in which a large number of firms all produce the same product
10. when quantity supplied is more than quantity demanded
12. a system of allocating scarce goods and services using criteria other than price
13. a minimum price for a good or service
15. factors that cause a producer's average cost per unit to fall as output rises
17. a market dominated by a single seller
18. the right to sell a good or service within an exclusive market
20. a minimum price that an employer can pay a worker for an hour of labor
23. a monopoly created by the government
25. the point at which quantity supplied and quantity demanded are equal
26. expenses a firm must pay before it can begin to produce and sell goods

1. a market in which goods are sold illegally
3. a government issued right to operate a business
4. a market structure that does not meet the conditions of perfect competition
6. a market that runs most efficiently when one large firm supplies all of the output
7. the ability of a company to change process and output like a monopolist
8. a maximum price that can be legally charged for a good or service
9. quantity supplied is greater than quantity demanded
11. quantity demanded is greater than quantity supplied
14. a price ceiling placed on rent
16. a product that is the same no matter who produces it, such as notebook paper, or milk
19. any factor that makes it difficult for a new firm to enter a market
21. if the market price or quantity supplied is anywhere but at the equalibrium
22. costs of production that affect people who have no control over how much of a good is produced
24. the financial and opportunity costs consumers will pay when searching for a good or service