Ch. 11 Monopoly Microeconomics Flashcards Quizlet PDF

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Notes from chapter 11 to provide context to the rest of the unit....

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2/15/22, 10:31 AM

Ch. 11 Monopoly Microeconomics Flashcards | Quizlet

Ch. 11 Monopoly Microeconomics Terms in this set (15) Monpoloy

Monopoly Firm

Market Structure in which there is a single supplier of a product.

Single supplier of a product for which there are no close substitutes.

Anything that impedes the ability of firms to begin a new business Barrier to Entry

in an industry where existing firms are earning positive economic profits.

Economies of Scale

Owning Essential Resources

Licenses, patents and restrictions on

Natural Barrier to entry.

Action on the part of firms as a barrier to entry.

Government created barriers to entry.

number of firms in an industry

Firm that has become a monopoly because of economies of scale (lower costs enable firm to force smaller firm with higher costs out Natural Monopoly

of business) and demand conditions; If the market can only support one producer or if the LRATC continually slopes downward.

Local Monopoly

Regulated Monopoly

Monopoly Power

Monopoly that exists in a limited geographic area.

Monopoly whose prices and production rates are controlled by a government entity.

Market power, ability to set prices and not just be a price taker; demand curve downward sloping.

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Ch. 11 Monopoly Microeconomics Flashcards | Quizlet

A firm that sets the price of the product it sells. It may have to Price Maker

Monopolization

Price Discrimination

Perfect Price Discrimination

lower prices but it can set profit maximizing quantity; MR=MC

The attempt by a firm to take over the market to become the only supplier of a good or service in the market.

Different consumers pay different amounts for the same good or service when there is market power.

When a firm is able to charge a customer exactly the price that the customer was willing and able to pay.

The reduction in consumer surplus and producer surplus that is Deadweight Loss

not transferred to a firm or to anyone else caused by inefficiency or by a monopoly.

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