Chapter 7Econ Vocab

Market structure in which a large number of firms all produce the same product.

Product that is the same no matter who produces it, such as petroleum, notebook paper, or milk.

Any factor that makes it difficult for for a new firm to enter a market.

A market structure that does not meet the conditions of perfect competition.

Expenses a firm must pay before it can begin to produce and sell goods.

Market dominated by a single seller.

Factors that cause a producer's average cost per unit to fall as output rises.

Market that runs most efficiently when one large firm supplies all of the output.

Monopoly created by the government.

Licence that gives the inventor of a new product the exclusive right to sell it for a certain period of time.

The right to sell a good or service within an exclusive market.

Government issued right to operate a business.

Division of customers into groups based on how much they will pay for a good.

Ability of a company to change prices and output like a monopolist.

Market structure in which many companies sell product that are similar but not identical.

Making a product different from other similar products.

Way to attract customers through style, service, or location, but not a lower price.

Market structure in which a few large firms dominate a market.

Series of competitive price cuts that lowers the market price below the cost of production.

Agreement among firms to divide the market, set prices, or limit production.

Agreement among firms to charge one price for the same good.

Formal organization of producers that agree to coordinate prices and production.

Selling a product below cost to drive competitors out of the market.

Laws that encourage competition in the marketplace.

like a cartel, an illegal grouping of companies that discourages competition.

Combination of two or more companies into a single firm.

Removal of some government controls over a market.