Flashcards
Ch 7 Vocab ECONOMICS
Cards in this deck (17)
- 1perfect competitiona market structure in which a large number of firms all produce the same product
- 2commoditya product that is the same no matter who produces it
ex: petroleum, notebook paper, milk - 3barrier to entryany factor that makes it difficult for a new firm to enter a market
- 4start-up coststhe expenses a firm must pay before it can begin to produce and sell goods
- 5monopolya market dominated by a single seller
- 6economies of scalefactors that cause a producers average cost per unit to fall as output rises
- 7patentlicense that gives the inventor of a new product the exclusive right to sell it for a certain period of time
- 8franchisethe right to sell a good or service within an exclusive market
- 9price discriminationdivision of costumers into groups based on how much they will pay for a good
- 10monopolistic competitiona market structure in which many companies sell products that are similar but not identical
- 11oligopolya market structure in which a few large firms dominate a market
- 12price fixingan agreement among firms to change on price for the same good
- 13cartela formal organization of producers that agree to coordinate prices and production
- 14predatory pricingselling a product below cost to drive competitors out of the market
- 15antitrust lawslaws that encourage competition in the market place
- 16mergercombination of two or more companies into a single firm
- 17deregulationthe removal of some government controls over a market