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17 Cards in this Set
- Front
- Back
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The ability to alter the market price of a good or service.
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Market power
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a firm that produces the entire market supply of a particular good or service
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monopoly
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produce at that rate of ouput where marginal revenue equals marginal costs
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profit maximization rule
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the demand curve in monopoly situations is identical to what???
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the market demand curve for the product
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reductions in minimum average costs that come about through increases in the size of plant and equipment
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economies of scale
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the selection of the short run rate of output with existing plant and equipment
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product decision
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Total cost divided by the quantity produced in a given time period.
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average total cost
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the offer of goods at prices equal to their marginal cost
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marginal cost pricing
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monopolist can reap tremendous profits from market power due to what kind of demand?
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inelastic demand
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the sale of an identical good at different prices to different consumers by a single seller
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price discrimination
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an industry in which one firm can achieve economies of scale over the entire range of market supply
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natural monopoly
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an imperfectly copetitive industry subject to potential entry if prices or profits increase
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contestable markets
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government intervention to alter market structure or prevent abuse of market power.
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anti trust
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How many real world firms are best classified as pure monopoly
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10 percent
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monopoly earns a normal profit if
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p=atc
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what is a long run result of price regulation
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government subsidizing its production
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what is a result of quantity regulation
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firm has no incentive to provide high quality service
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