Chapter 7 Economic Systems

A market structure where a large number of firms all produce the same product and no single seller controls supply or price

• Perfect Competition

• Commodity

• Barrier to Entry

• Imperfect Competition

A product that is considered the same no matter who produces or sells it.

• Perfect Competition

• Commodity

• Barrier to Entry

• Imperfect Competition

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

• Perfect Competition

• Commodity

• Barrier to Entry

• Imperfect Competition

A market structure that fails to meet the conditions of perfect competition.

• Perfect Competition

• Commodity

• Barrier to Entry

• Imperfect Competition

A market structure where a single seller dominates

• Monopoly

• Economies of scale

• natural Monopoly

• government monopoly

• patent

factors that cause a producer's average cost per unit to fall as output rises

• Monopoly

• Economies of scale

• natural Monopoly

• government monopoly

• patent

A market that runs most efficiently when one large firm supplies all of the output

• Monopoly

• Economies of scale

• natural Monopoly

• government monopoly

• patent

A monopoly created by the government

• Monopoly

• Economies of scale

• natural Monopoly

• government monopoly

• patent

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

• Monopoly

• Economies of scale

• natural Monopoly

• government monopoly

• patent

A contract that gives a single firm the right to sell its goods within an exclusive market

• Franchise

• License

• Price Discrimination

• Market Power