Chapter 7 Flashcards
A product that is the same no matter who produces or, such as petroleum, notebook paper, or milk.
Commodity
Any factor that makes it difficult for a new firm to enter a market
Barrier to Entry
A market structure that does not meet the conditions of perfect competition.
Imperfect Competition
The expenses a firm must pay before it can begin to produce and sell goods
Start-up Costs
A market dominated by a single seller.
Monopoly
A license that gives the inventor a new product the exclusive right to seek it for a certain period of time.
Patent
The right to sell a good or service within an exclusive market.
Franchise
A government-issued right to operate a buisness.
License
Division of customers into groups based on how much they will pay for a good.
Price Discrimination
The ability of a company to change prices and output like a monopolist
Market Power
A series of competitive price cuts that lowers the market price below the cost of production.
Price War
An agreement among firms to divide the market, set prices, or limit production.
Collusion
An agreement among firms to charge one price for the same good.
Price fixing
A formal organization of producers that agree to coordinate prices and production
Cartel
Selling a product below cost to drive competitors out of the market
Predatory Pricing
