Match the term to the definition. There are NO DUPLICATES inthis set.

A decision for the loss-minimizing producer to cease productionbut not go out of business

A group of firms that agree to coordinate their production andpricing decisions to maximize group profits

The condition that exists when market output is produced usingthe least-cost combination of inputs, given the level oftechnology.

To maximize profit or minimize loss, a firm should produce thequantity at which MR = MC

A legal barrier to entry that conveys to its holder theexclusive rights to sell a product for 20 years.

Important features of a market such as the number of firms, typeof product, barriers to entry, etc.

An agreement among firms to increase economic profit by dividingthe market or fixing the price.

Products produced within a market that are standardized.

Any impediment that prevents new firms from competing on anequal basis with existing firms in an industry.

The change in total cost resulting from a one-unit change inoutput.

The condition that exists when firms produce the output that ismost preferred by consumers; marginal benefit equals marginalcost

A firm whose price is adopted by the rest of the industry.

A market situation in which there are only a few firms and eachof them must consider the effect of their actions on theircompetitors’ behavior.

Increasing profit by selling a product for different prices todifferent groups of consumers when the price differences are notjustified by differences in production costs.

The difference between the rate of output at a firm’s minimumaverage cost and the profit-maximizing rate of output

Vocabulary:

A.	Market structure
B.	Allocative efficiency
C.	Marginal cost
D.	Homogeneous product
E.	shutdown
F.	Excess capacity
G.	interdependence
H.	Golden rule of profit maximization
I.	Patent
J.	Price discrimination
K.	Productive efficiency
L.	Collusion
M.	cartel
N.	Barrier to entry
O.	Price leader