01:220:102 Lecture Notes - Lecture 16: Monopolistic Competition, Market Power, Oligopoly

• School: Rutgers University
• Department: Economic
• Course: 01:220:102
• Professor: W O N H Y U N G Lee

Document Summary

The number of producers in the market. Whether the goods offered are identical or differentiated. Differentiated goods are goods that are different but considered somewhat substitutable by consumers. Monopolist: a firm that is the only producer of a good that has no close substitutes. Monopoly: an industry controlled by a monopolist. Antitrust laws are intended to prevent monopolies from emerging. Market power: the ability of a firm to raise prices. Barrier to entry: something that prevents other firms from entering the industry. Five principal types of barriers to entry: Control of a scarce resource or input. A network externality: exists when the value of a good or service to an individual is greater when many other people use the good or service as well. Patent: gives an inventor a temporary monopoly in the use or sale of an invention. Copyright: gives the creator of a literary or artistic work sole rights to profit from that work.