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8 Cards in this Set
- Front
- Back
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Monopoly
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A market where there is one supplier of a product for which there are no close substitutes
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Barriers to Entry
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Obstacles which make it more difficult or less profitable for new firms to enter an industry
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Regulatory Barriers
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When government laws or regulations restrict competition by limiting entry
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Natural Barriers
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When a smaller number of firms can supply the product to the market at a lower average cost because of economies of scale
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Strategic Barriers
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When existing firms enact policies which attempt to limit other firms from entering the market
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Market (Monopoly) Power
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The ability of a firm to alter the price of its product (without significantly effecting sales)
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X-Inefficiency
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Excessive costs by a firm because of a lack of competitive pressure
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Price Discrimination
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When a firm sells the same product at different prices to different customers even though there are no differences in the costs
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