Chapter 7

2. the removal of government controls over a market.
4. laws that encourage competition in the marketplace.
6. the dividion of consumers into groups based on how much they will pay for a good.
7. a way to attract customers through style service or location but not a lower price.
10. when two or more companies join to form a single firm.
11. a market that runs most efficentely when one large firm supplies all the output.
12. a market structure in which a few large firms dominate a market.
15. any factor that makes it difficult for a new firm to enter a market.

1. the expenses a new business must pay before it can begin to produce and sell goods.
3. factors that cause a producers average cost per unit to fall as output rises.
5. a license that gives the inventor of a new product the exclusive right to sell it for a specific period of time.
8. selling a product below cost for a short period of time to drive competitors out of market.
9. a product such as petroleum or milk that is considered the same no matter who produces or sells it.
13. a formal organzation pf producers that agree to coordinate price and production
14. a contract that gives a single firm that right to sell its goods within an exclusive market.