econ chap 7 vocab

Created by abbyhorse 

16 terms

perfect competition

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


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

imperfect competition

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

start up costs




economies of scale

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

natural monoploy

A market that runs most efficiently when 1 large firm supplies all of the output

government monopoly

a monopoly created by the government


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


The right to sell a good or service within an exclusive market


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 ability of a company to change prices and output like a monopolist

monopolistic competition

a market structure in which many companies sell products that are similar but not identical


making a product different from other similar products