Chapter 7 Economics

2. Factors that cause a producers average cost per unit to fall as output rises.
6. A way to attract customers through style, service, or location but not a lower price.
11. Any factor that makes it difficult for a new firm to enter a market.
12. An illegal agreement among firms to divide market, set prices, or limit production.
14. A license that gives the inventor of a new product that exclusive right to sell it for a specific period of time.
15. A market structure in which a few large firms dominate a market.
17. Division of Consumers into groups based on how much they will pay for a good.
18. A product such as petroleum or milk that is considered the same no matter who produces it or sells it.

1. The expenses a new business must pay before it can begin to produce and sell goods.
3. A contract that gives a single firm the right to sell its goods within an exclusive market.
4. Laws that encourage competition in the marketplace.
5. A market structure in which consumers sell products that are similar but not identical.
7. Formal organization of producers that agree to coordinate prices and production.
8. A market that runs most efficiently when one large firm supplies all of the output.
9. The removal of government controls over a market.
10. War A series of competitive price cuts that lowers the market price below the cost of production.
13. When two or more companies join to form a single firm.
16. selling a product below cost for a short period of time to drive competitions out of the market