Ch 7: Market Systems

Front

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

Back

perfect competition

Front

a product that is the same matter who produces it, such as petroleum, milk notebook paper, or milk.

Back

commodity

Front

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

Back

barrier to entry

Front

a market structure that does not meet the conditions of perfect competition.

Back

imperfect competition

Front

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

Back

start-up costs

Front

a market dominated by a single seller.

Back

monopoly

Front

factors that cause a producers average cost per unit to fall as output rises.

Back

economies of scale

Front

a market that runs most efficiently when one large firm supplies all the output.

Back

natural monopoly

Front

a monopoly created by the contract, regulation or law with a federal, state or local government

Back

government monopoly

Front

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

Back

patent