Term
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Definition
A firm that is the sole seller of a product without close substitutes
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Term
| What kind of power do Monopolies have? |
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Definition
| more market power than any other type of firm (competitive, oligopoly, etc) |
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Term
| What cause Monopolies to arise? |
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Definition
| barriers to enter the market other firms cannot enter the market to compete with it |
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Term
What is the Production process of a Natural monopoly?
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Definition
a single firm can produce the entire market Q at lower cost than could several firms
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Term
What kind of monopoly could this be viewed as?
If FC is huge (cost of providing infrastructure), and MC is relatively small, ATC could slope downward |
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Definition
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Term
What are Monopoly resources?
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Definition
A single firm owns or has access to a key resource.
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Term
DeBeers owns most of the world’s
diamond mines
What kind of barrier could this be viewed as? |
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Definition
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Term
How does Government regulation manifest a monopoly? |
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Definition
The government gives a single firm the exclusive right to produce the good.
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Term
patents, copyright laws
are considered to be government _ _ _ _ _ _ _ _ _ _. |
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Definition
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Term
In a Monopolistic economy what happens to the MR(Marginal Revenue) if Q (Quantity) increases?
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Definition
has two effects on revenue:
- Output effect: higher output raises revenue
- Price effect: lower price reduces revenue
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Term
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Definition
| only a few firms are in the market and offer similar or identical products |
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Term
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Definition
| how people behave in strategic settings |
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