chapter 7

3. a market that runs most efficiently when one large firm supplies all of the output
8. the expenses a new business must pay before it can begin to produce and sell goods
9. selling a product below cost for a short period of time
12. discrimination the division of consumer into groups based on how much they will pay a good
14. price cuts that lowers the market below the cost of product
15. a contract that gives a single firm the right to sell its goods
16. a market scripture in which many companies sell products that are similar
18. illegal agreements among firms to divide the market set prices or limit products

1. when two or more companies join to form a single firm
2. factor that causes a producers average cost per unit to fall output rises
4. a way to attract customers through style services or location but not a lower price
5. any factor that makes it difficult for a new firm to enter a market
6. a license that gives the inventor of a new product
7. the removal of government contract over a market
10. laws that encourage competition in the market price
11. a market structure in which a few large firms dominate a market
13. a product that is considered the same no matter who produces
17. a formal organization of production that agrees to coordinate prices and products