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5 Cards in this Set
- Front
- Back
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entry barrier
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any barrier to the entry of new firms into an industry. An entry barrier may be natural or created
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natural monopoly
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an industry characterized by economies of scale sufficiently large that only one firm can cover its costs while producing at the minimum efficient scale
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cartel
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an organization of producers who agree to act as a single seller in order to maximize joint profits
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price discrimination
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the sale by one firm of different units of a commodity at two or more different prices for reasons not associated with differences in cost
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Profit-Maximizing Condition in Monopolies
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P > MR
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