Chapter 7 Flashcards Preview

ECONOMICS Mid-Term '15 > Chapter 7 > Flashcards

Flashcards in Chapter 7 Deck (19):
0

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

Perfect Competition

1

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

Commodity

2

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

Barrier to Entry

3

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

Imperfect Competition

4

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

Start-Up Costs

5

A market dominated by a single seller

Monopoly

6

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

Patent

7

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

Franchise

8

A government-issued right to operate a business

License

9

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

Price Discrimination

10

The ability of a company to change prices and output like a monopolist

Market Power

11

A series of competitive price cuts that lowers the market price below the cost of production

Price War

12

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

Collusion

13

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

Price Fixing

14

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

Cartel

15

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

Predatory Pricing

16

Like a cartel, an illegal grouping of companies that discourage competition

Trust

17

Combination of two or more companies into a single firm

Merger

18

The removal of some government controls over a market

Deregulation