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9 Cards in this Set
- Front
- Back
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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 non-price 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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The same-time derivation of utility from some product by a large number of consumers.
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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 production of output, whatever its level, at a higher average (and total) cost than is necessary for producing that level of output.
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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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