ECON 1000 Chapter Notes - Chapter 15-22: Monopolistic Competition, Monopoly Profit, Deadweight Loss

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coralcicada810

6 Feb 2018

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Chapter 15: monopoly different customers produce some good or service an entire market at a smaller cost than could two or more firms. Monopoly: a firm that is the sole seller of a product without close substitutes. Natural monopoly: a monopoly that arises because a single firm can supply a good or service to. Government created monopolies: the government gives a single firm the exclusive right to. Price discrimination: the business practice of selling the same good at different prices to. A monopoly firm can control the price at which it sells a good. Profits are not unlimited because high prices reduce quantity bought. Monopolies have higher ability to influence price of its output, competitive firms have little to no. Because the monopoly is the sole producer in the market its demand curve is the market demand. A monopolist"s revenue is always less than the price of its good.

Related Questions

A government-created monopoly arises when

a. government spending in a certain industry gives rise to monopoly power.

b. the government exercises its market control by encouraging competition among sellers.

c. the government gives a firm the exclusive right to sell some good or service

d. All of the above could qualify as government-created monopolies

purpleminnow136

Select the correct answer:

A (legal; natural) monopoly exists when one firm can meet the entire market demand at a lower average total cost than two or more firms could.

A monopoly that is able to sell different units of a good or service for different prices is a (natural-price; price-discriminating) monopoly.

The act of obtaining special treatment by the government to create an economic profit is called (government surplus; rent seeking).

Regulated firms have an incentive to inflate their costs under (rate of return; price cap) regulation.

The U.S. Postal Service has a (natural; legal) monopoly on first class mail delivery.

A (single-price; price discriminating) monopoly maximizes profit by producing the quantity at which marginal revenue equals marginal cost and then charging the maximum price that consumers are willing to pay for that quantity.

The key idea behind price discrimination is to convert (consumer surplus; producer surplus) into economic profit.

When the demand for a good or service limits the quantity that can be sold to an output at which the firm experiences economies of scale, the ____.

A) firm is a single-price monopoly

B) good that the industry produces has close substitutes

C) firm is a natural monopoly

D) firms are protected from competition by a legal barrier

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ECON 1000 Chapter Notes - Chapter 15-22: Monopolistic Competition, Monopoly Profit, Deadweight Loss

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