Topic 4

2. pricing- selling a product below cost for a short period of time to drive competitors out of market
3. competition- a market structure in which many companies sell products that are similar but not identical
4. the removal of government controls over a market
7. a license that gives you the investor of a new product the exclusive right to sell it for a specific period of
13. two or more companies join to form a single firm
14. - a market in which a single seller dominates
15. fixing-an agreement among firms to charge one price for the same good
16. to entry- any factor that makes it difficult for a new firm to enter a market

1. marker structure in which a few large firms dominate a market
5. monopoly - market that runs most efficiently when one large firm provides all of the output
6. costs- the expenses a new business must pay before it can begin to produce and sell goods
8. a government issued right to operate a business
9. a product such as a petroleum or milk that is considered the same no matter who sales it
10. discrimination- the division of consumers into groups based on how much they will pay for a good
11. laws- laws that encourage competition in the marketplace
12. an illegal agreement among firms to divide the market set prices or limit production