Ch 8 - Monopoly

is derived from the added revenue decreasing at a faster rate than price.

Monopolies have ________, which indicates it has a downward sloping demand curve, where marginal revenue will be less than demand.

Tend to be price makers, as they set the price they want.

producing the exact amount of output that members of the society will need.

Goods with ________ have less substitutes to consumers.

is positive, as the prices are lowered by monopolists, which increases profits and leads to an increase in total revenue.

provide consumers with the ability to use substitutes.

Is a market structure where one firm dominates the entire capacity of the industry, meaning that no exact substitutes for the goods and services can be offered

A firm which controls the resources that are needed for the production of a product

producing the exact amount of output that members of the society will need

the price of goods and services depends on the highest price which consumers are capable of paying

Is a market structure where one firm dominates the entire capacity of the industry, meaning that no exact substitutes for the goods and services can be offered

Entering and exiting the market due to this monopoly is hard

When a firm is able to gain production advantages over its opponents by producing goods and services at a lower cost than the other firms.

A firm which controls the resources that are needed for the production of a product

Where the government chooses to give a singular the power of sole production to the market

The government grants sole production of a product to a singular firm

A profit maximising monopoly will be produced

Monopolists will not produce goods and services

A firm in the economy which has total control of the output and production of resources (goods and services)

producing the exact amount of output that members of the society will need

When the production of products is being done at the lowest cost possible

Is a selling strategy which prices the same good at different prices based on what the producer believes the consumers will pay for this product.

This monopoly is formed when there are high start-up costs leading to larger economies of scale, which leaves only one firm in charge of producing goods and services to this territory.