Economics Chapter 7 Market Structures

Front 1

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

Back 1

perfect competition

Front 2

a product is the same no matter who produces is such as petoleum, notebook paper, or milk

Back 2

commodity

Front 3

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

Back 3

barriers to entry

Front 4

a market structure that does not meet the conditions of perfect competition

Back 4

imperfect competition

Front 5

the expenses a firm must pay before it can begin to produce and sell goods

Back 5

start-up costs

Front 6

a market dominated by a single seller

Back 6

monopoly

Front 7

factors that cause a producer's aberage cost per unit to fall as output rises

Back 7

economies of scale

Front 8

a market that runs most efficiently when one parge firm supplies all of the output

Back 8

natural monopoly

Front 9

a monopoly created by the government

Back 9

government monopoly

Front 10

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

Back 10

patent

Front 11

the right to sell a good or service within an exclusive market

Back 11

franchise

Front 12

a government-issued right to operate a business

Back 12

license

Front 13

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

Back 13

price discrimination

Front 14

a market structure in which many companies sell products that are similiar but not identical

Back 14

monopolistic competition

Front 15

making a product different from other similiar products

Back 15

differentiation

Front 16

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

Back 16

nonprice competition

Front 17

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

Back 17

oligopoly

Front 18

a series of competitve price cuts that lowers the market price below the cost of production

Back 18

price war

Front 19

an agreement among firms to divide the market, set prices, or limit production

Back 19

collusion

Front 20

an agreement among firms to charge one price for the same good

Back 20

price fixing

Front 21

a formal organization of producers that agree to coordinate prices and production

Back 21

cartel

Front 22

selling a product below cost to drive competitors out of the market

Back 22

predatory pricing

Front 23

laws that encourage competition in the marketplace

Back 23

antitrust laws

Front 24

like a cartel, an illegal grouping or companies that discourages competition

Back 24

trust

Front 25

combination of two or more companies into a single firm

Back 25

merger

Front 26

the removal of some government controls over a market

Back 26

deregulation