Chapter 7 vocab

5. the expenses a new business must pay before it can begin to produce and sell goods
6. a market structure in which a few large firms dominate a market
8. a market that runs most efficiently when one large firm supplies all of the output
11. an illegal agreement among firms to divide the market, set prices, or limit production
12. when two or more companies join to form a single firm
14. a way to attract customers through style, service, or location, but not a lower price
15. division of consumers into groups based on how much they will pay for a good
16. any factor that makes it difficult for a new firm to enter the market
17. selling a product below cost for a short period of time to drive competitors out of market.
18. factors that cause a producer's average cost per unit to fall as output rises

1. a market structure in which many companies sell products that are similar but not identical
2. a product such as petroleum or milk that is considered the same no matter who produces or sells it.
3. a formal organization of producers that agree to coordinate prices and production
4. the removal of some government controls over a market
7. a contract that gives a single firm the right to sell its goods within an exclusive market
9. a series of competitive price cuts that lowers the market price below the cost of production
10. License that gives the inventor of a new product the exclusive right to sell it for a certain period of time
13. Series of laws intended to promote abundant fair competition in the marketplace