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7 Cards in this Set
- Front
- Back
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What is a monopoly market?
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One seller and no close substitutes
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Two Examples of Actual Monopolies?
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1. Essential new drug
2. Electricity in local markets |
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There is one very big seller that will ignore the smaller sellers
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practical monopoly
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Why is a market monopolized?
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Ownership of an essential resource
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If a firm is a monopolist, can the firm choose any price and quantity to sell?
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Monopolist can choose price or production / sales, but not both because consumers quantity demanded is decreasing with price
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Why does the MR curve decrease faster than the demand curve?
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Because there is always a loss of revenue when you lower the price
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laws aimed at eliminating collusion and promoting competition among firms
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antitrust laws
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