Economics 1021A/B Lecture Notes - Deutscher Motor Sport Bund, Marginal Revenue, Deadweight Loss

• School: Western University
• Department: Economics
• Course: Economics 1021A/B
• Professor: Michael Parkin

Document Summary

That produces a good or service for which no close substitute exists. In which there is one supplier that is protected from competition by a barrier preventing the entry of new firms. Barriers to entry: a constraint that protects a firm from potential competitors are called barriers to entry, three types of barriers to entry are. For a monopoly firm to determine the quantity it sells, it must choose the appropriate price. There are two types of monopoly price-setting strategies: A single-price monopoly is a firm that must sell each unit of its output for the same price to all its customers. Price discrimination is the practice of selling different units of a good or service for different prices. Many firms price discriminate, but not all of them are monopoly firms. A monopoly is a price setter, not a price taker like a firm in perfect competition.