Answers to Matching Set # Two
A. economies of scale, legal barriers, 
resource control
B. at the lowest  point on the average total cost 
(ATC) curve.
C. cut-throat competition in an oligopolistic 
industry creates this effect
D. (P - ATC) x Q
E. losing money
F. read off the demand curve
G. patent
H. sum of the squares of the amount of market control 
of firms in the industry, adopted as the standard 
for judging anti-trust violation with Reagan 
Administration.
I. every firm attempts to produce at this level 
of maximization of profit
J. profitable operation
K. falls two to one for every drop in demand curve
L. earnings in excess of what other investment 
would have earned.
M. earning less than what alternative investment 
would have brought.
N. the low point on the firm's ATC curve -- if the 
price is below this point, the firm will go out of
business in the long run.
O. a numerical classification system delineating 
more specific production within a given industry.
P. earnings that are the same as could have been 
anticipated in another form of investment 
of capital.
Q. the lowest point on a firm's AVC curve -- 
if price is below this point, the firm will 
cease to operate in the short run.
R. liabilities in excess of revenue.
S. Chrysler/AMC/Jeep or Strohs/Schlitz or 
Detroit News/ Free Press
T. industry in which a single firm can provide 
cheaper service than could several competing firms.
U. difference in prices charged based on legally 
permissable criterion.
V. distinction in service or item produced
W. Brown Shoe/ Kinney Shoes or  
Ford Motor/Rouge Steel/ DT&I Railroad/ 
Shipping/Mining
X. GM/ EDS or perhaps US Steel/Burger King, 
Ralston-Purina/Jack-in-the-Box
Y. measure of degree of market control which 
adds the shares held by the 
biggest usually four competitors.
Z. illegally or unethically based difference 
in prices charged customers. 


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