| A | B |
|---|
| 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, such as petrolem, notebook paper, or milk |
| barrier to entry | any factor that makes it difficult for a new firm to enter a market |
| imperfection competition | a market structure that does not meet the conditions of perfect competition |
| 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 prouders average cost per unit to fall as output rises |
| natural monopoly | a market that runs most efficiently when one large firm supplies all of the output |
| government monopoly | a monopoly created by the government |
| patent | a 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 a exclusive market |
| license | a government issued right to operate a business |
| price discrimination | division of customers into groups based on how much they will pay for a good |
| market power | the abillity of a companyto change prices and output like a monopolist |
| monopolistic competition | a market structure in which many companies sell products that are similar but not identical |
| predatory pricing | selling a product below cost to drive competitiors out of the market |
| trust | like a cartel, an illegal grouping of companies that discourages competition |
| merger | combination of two or more companies into a single firm |
| deregulation | the removal of some governement contorls over a market |
