Chapter 7

1. of Scale Factors that cost a producers average cost per/unit to fall as out put rises
6. up cost Expenses a new business must pay before it can begin to produce and sell goods
7. A contract that gives the single firm the right to sell its goods within a exclusive market
11. Monopoly A market that runs efficiently when one large firm supplies all of that output
12. Pricing- selling a product below cost for a short period of time to drive competitors out of market
13. The removal of government controls over a market
16. Market structure in which a few large firms dominate market price below cost of productions

2. A product such as petroleum or milk is considered the same no madder who sells or produces it.
3. A ileagle agreement among firms to divide the market and set prices and limit production
4. A license that gives an inventor of a new product the exclusive right to sell it for a period of time
5. A formal organization of producers who agree to coordinate prices and productions
8. Plastic competition A market structures in which many companies sell products that are similar
9. When two or more companies join to form a single firm
10. to entry- Any factor that makes it difficult for a new firm to enter a new market
12. discrimination Division of consumers into groups based on how much they will pay
14. trust laws Laws that encourage competition in the market place
15. prices competition A way to attract consumers through styles services and location without lowering prices
17. war A series of competitive cuts that lower the market place below costs of productions