Chapter 7 Vocab

6. a market that runs most efficently 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.
12. laws that encourage competition in the marketplace
13. when two or more join to form a single firm
17. a way to attract customers through style, service, or location, but not a lower price
18. Pricing selling a product below cost for a short period time to drive competitors out of the market.

1. any factor that makes it difficult for a new firm to enter a market
2. a license that gives the inventor of a new product the exclusive right to sell it for specific period of time
3. factors that cause a producers average cost per unit to fall as output rises
4. a market structure in which many companies sell products that are similiar but not identical
5. contract that gives a single firm the right to sell its goods within an exclusive market
7. a series of competitive price that lowers the market price below the cost of production
9. the division of consumers into groups based on how much they will pay for a good.
10. an illegal agreement among firms to divide the market, set prices, or limit production
11. a market structure in which a few large firms dominate a market
14. a product such as petroleum or milk that is considered the some no matter who produces or sells it
15. the removal of government controls over a market
16. a formal organization of producers that agree to coordinate prices and production