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ECON 1000 Lecture Notes - Lecture 12: Marginal Revenue, Marginal Cost, Price Ceiling

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23 Dec 2019

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ECON 1000 Full Course Notes

ECON 1000 Full Course Notes

Document Summary

Monopoly: a market that produces a good or service for which no close substitute exists. One supplier that is protected from competition by a barrier preventing the entry of new firms. No close substitute: sells no close substitutes by any firm. Barriers to entry: protect a firm from potential competitors. Natural monopoly: a market in which economies of scale enables one firm to supply the entire market at the lowest possible cost. Ownership: occurs if one firm owns a significant portion of a key resource. Legal: a market in which competition and entry are restricted by the granting of a: Single price monopoly: firm that must sell each unit of its output for the same price to all its customers. Price discrimination: practice of selling different units of a good or service for different prices. A monopoly is a price setter because the demand for output is the market demand.

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Related Questions

When the demand for a good or service limits the quantity that can be sold to an output at which the firm experiences economies of scale, the ____.

A) firm is a single-price monopoly

B) good that the industry produces has close substitutes

C) firm is a natural monopoly

D) firms are protected from competition by a legal barrier

carminegoldfish488

1. Which of the following is a characteristic of pure monopoly?

A. close substitute products

B. barriers to entry

C. the absence of market power

D. "price taking"

2. An example of a monopoly would be

A. one of many U.S. wheat farmers

B. one of the few U.S. automakers

C. AT&T cell phone service

D. the local water company

3. In which market structure do firms exist in very large numbers, each firm produces an identical product, and there is freedom of entry and exit?

A. monopoly

B. oligopoly

C. only perfect competition

D. only monopolistic competition

E. both perfect competition and monopolistic competition

4. Which of the following is the best example of a perfectly competitive market?

A. farming

B. diamonds

C. athletic shoes

D. soft drinks

E. electricity distribution

crimsonalligator541

1. Which characteristic led to Microsoft exercising monopoly power?

A.copyright protection for the Windows operating system

B .no close substitutes

C.economies of scale

D.government franchise

2. The goal of antitrust law is to:

A. prevent monopolies and monopoly power from arising.

B.protect monopolies from the competition.

C. make sure consumers pay high prices.

D. preserve allocative inefficiencies of monopolies.

3. Which of the following is not a characteristic of a monopoly?

A. The market has just one seller.

B.There exist significant barriers to entry.

C. Substitutes for the monopolist's products are available to buyers.

D. No close substitutes exist for the monopolist's products.

4. A constantly declining long-run average cost curve is a characteristic of what type of industrial structure:

A. Monopoly

B. Natural monopoly

C. Oligopoly

D. Perfect competition

5. An industry that has large economies of scale operates most efficiently as a(n):

	A.competitive industry.
	B.monopoly
	C.regulated natural monopoly.
	D.anarchic industry.