Chapter 7 Market Structure Vocab
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.
Imperfect 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 producer’s average cost per unit to fall as output rises.
Natural Monopoly: A market that runs more efficiently when one large firm supplies all of the output.