Monopolies 0.0 / 5 ? EconomicsMonopolyA2/A-levelEdexcel Created by: lysette-ashmoreCreated on: 14-11-17 12:16 Monopoly def A form of market structure in which there is only one seller 1 of 12 Assumptions OHPNP 2 of 12 Barriers to enry Trademarks and patents, legislation, differentiation, fear of a price war, cost advantages, control over supply 3 of 12 Natural monopoly definition A monopoly that arises in an industry in which there are such substantial economies of scale that only one firm is liable 4 of 12 Number of firms 1 5 of 12 Type of product Limited 6 of 12 Barriers to entry High 7 of 12 Super-normal profits in the short run Yes 8 of 12 Super-normal profits in the long run Yes 9 of 12 Pricing power price maker 10 of 12 Efficient Not allocativley efficient 11 of 12 Price discrimination def When a firm is able to charge different prices to customers for the same product (removes dead weight loss) 12 of 12
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