Microeconomics: Monopoly

KEY TERMS

• Monopoly: when a single firm dominates the market 
• Perfect competition: where a large number of firms compete in a market 
• Productive effiency: where a firms output is produced at the lowest possible average total cost (this is measured by total cost/output)

CAUSES OF MONOPOLY

• Unfair competitive practices
• Cost of entry into market barrier
• Statutory monopolies
• Established brand
• Patent and copyrights
• …