Chapter 6 and 7

2. Monopoly: A market that runs most efficiently when one large firm supplies all of the output
4. Costs: The financial and opportunity costs customers pay when searching for a good or service
8. The right to sell a good or service within an exclusive market
9. Competition: A market structure in which a large number of firms all produce the same product
11. Market: A market in which goods are sold illegally
13. A market structure in which a few large firms dominate a market
16. power: The ability of a company to change prices and output like a monopolist
17. Point at which quantity demanded and quantity supply are equal
18. Wage: A minimum price that an employer can pay a worker for an hour of labor
19. Laws: Laws that encourage competition in the marketplace
20. Floor: A minimum price for a good or service
21. Costs: Cost of production that affect people who have no control over how much of a good is produced
22. An agreement among firms to divide the market, set prices, or limit production
23. A system of allocating scarce goods and services using criteria other than price

1. Situation in which quantity supply is more than quantity demanded
3. A license that gives the inventor of a new product the exclusive right to sell it for a certain period of time
4. Costs: The expenses a firm must pay before it can begin to produce and sell goods
5. Shock: A sudden shortage of a good
6. A situation in which a good or a service is unavailable; excess demand
7. When quantity supply is not equal to quantity demand in a market
10. of Scale: Factors that cause a producer's average cost per unit to fall as output rises
11. to Entry: Any factor that makes it difficult for a new firm to enter a market
12. Monopoly: A monopoly created by the government
14. A formal organization of producers that agree to coordinate prices and production
15. Control: A price ceiling placed on rent