Ch 7 Vocab ECONOMICS

Question	Answer
perfect competition	a market structure in which a large number of firms all produce the same product
commodity	a product that is the same no matter who produces it ex: petroleum, notebook paper, milk
barrier to entry	any factor that makes it difficult for a new firm to enter a market
start-up costs	the expenses a firm must pay before it can begin to produce and sell goods
monopoly	a market dominated by a single seller
economies of scale	factors that cause a producers average cost per unit to fall as output rises
patent	license that gives the inventor of a new product the exclusive right to sell it for a certain period of time
franchise	the right to sell a good or service within an exclusive market
price discrimination	division of costumers into groups based on how much they will pay for a good
monopolistic competition	a market structure in which many companies sell products that are similar but not identical
oligopoly	a market structure in which a few large firms dominate a market
price fixing	an agreement among firms to change on price for the same good
cartel	a formal organization of producers that agree to coordinate prices and production
predatory pricing	selling a product below cost to drive competitors out of the market
antitrust laws	laws that encourage competition in the market place
merger	combination of two or more companies into a single firm
deregulation	the removal of some government controls over a market

Resource summary

	Created by Zoe Skarzenski almost 6 years ago