Monopoly

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  • Created by: Jade
  • Created on: 01-12-12 12:09
What is a monopoly?
A monopoly is a single firm in the market
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In the UK, the Competition Act (1998) recognises that any firm that has a market share of _________ could have the power to act in a monopolistic way.
25% or more
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The competition act also recognises that a firm with over ____ market share could be dominant
40%
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Evidence of monopoly power would be where ?
A firm charged high prices and restricted output in order to make excessive profits
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Train operating companies run exclusive train services for the duration of their franchise. This is an example of a?
Legal monopolies
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Where monopolists lower prices to a level that forces new entrants to operate at a loss. This is?
Predatory pricing
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In a perfectly competitive market, in comparison to a monopoly. Which is true?
Price is lower, output is higher
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Other cards in this set

Card 2

Front

In the UK, the Competition Act (1998) recognises that any firm that has a market share of _________ could have the power to act in a monopolistic way.

Back

25% or more

Card 3

Front

The competition act also recognises that a firm with over ____ market share could be dominant

Back

Preview of the front of card 3

Card 4

Front

Evidence of monopoly power would be where ?

Back

Preview of the front of card 4

Card 5

Front

Train operating companies run exclusive train services for the duration of their franchise. This is an example of a?

Back

Preview of the front of card 5
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