Monopolies

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

Other cards in this set

Card 2

Front

Assumptions

Back

OHPNP

Card 3

Front

Barriers to enry

Back

Preview of the front of card 3

Card 4

Front

Natural monopoly definition

Back

Preview of the front of card 4

Card 5

Front

Number of firms

Back

Preview of the front of card 5
View more cards

Comments

No comments have yet been made

Similar Economics resources:

See all Economics resources »See all Monopoly resources »