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ch 7 test

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 petroleum, notebook paper, or 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 producer’s average cost per unit to fall as output rises
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 ot sell a good ro service within a exclusive market
license
a government issued right to operate a business
price war
a series of competitive price cuts that lowers the market price below the costs of production
oligopoly
a merket structure in which a few large firms dominate a market
merger
combination of two or more companies into a single firm
each member work together, agreed to output level
Cartels are difficult to operate by which following?
customer will substitute a rival product
what happens to a monopolistic firm that changes excess price for products?
very few companies selling identical products
what is a monopolistic competition?
make money off their own research without competition
Why does the government a something given monopoly a patent?
discounts
Which of the following is not a form of non price competition?
single firm supplies all the output
How does a natural monopoly function?
airlines
Which of the following factories have been deregulated in many years?
feed corn cattle
which of the following product is a commodity?
2 or 4 firms producing 7% of output
What is the definition of a oligarchy?
antitrust laws
Which of the following will not lead to a monopoly?
reduced start up costs
Effects the internet on business?
none
How much control over price does a company have?
Microsoft
which of these companies has not been forced to split by federal government?
greater than
In a monopoly, market price will be __price than on market?
decrease as production increases
a firm enjoys a economy of scale, its average cost
federal government won the power to win before states
What is the chief effect of the Sherman antitrust act?

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