BIOL 1001 Chapter : BIO CH 6 Outline Pt 2
Document Summary
Imperfectly competitive industry: an industry in which individual firms have some control over the price of their output. Market power: an imperfectly competitive firm"s ability to raise price without losing all of the quantity demanded for its product. Monopoly: is an industry with a single firm in which the entry of new firms is blocked. Oligopoly: an industry in which there is a small number of firms each large enough so that its presence affects prices. Monopolistic competitors: firms that differentiate their products in industries with many producers and free entry. Pure monopoly: an industry with a single firm that produces a product for which there are no close substitutes and in which significant barriers to entry prevent other firms from entering the industry to compete for profits. Economies of scale: exist when inputs are increased by some percentage and outputs increase by a greater percentage causing unit costs to fall.
