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9 Cards in this Set
- Front
- Back
Pure monopoly-
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a market structure in which one firm sells a unique product, into which entry is blocked, in which the single firm has considerable control over product price, and in which nonprice competition may or may not be found
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Barriers to entry
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- anything that artificially prevents the entry of firms into an industry
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Simultaneous consumption
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- a product’s ability to satisfy a large number of consumers at the same time
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Network effects
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- increases in the value of a product to each user, including existing users, as the total number of users rises
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X inefficiency
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- the failure to produce any specific output at the lowest average and total cost possible
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Rent seeking behavior-
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the actions by persons, firms, or unions to gain special benefits from government at the taxpayers’ or someone else’s expense
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Price discrimination
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- the selling of a product to different buyers at different prices when the price differences are not justified by differences in cost
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Socially optimal price
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- the price of a product that results in the most efficient allocation of an economy’s resources and that is equal to the marginal cost of the product
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Fair return price-
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the price of a product that enables its producer to obtain a normal profit and that is equal to the average total cost of producing it
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