74 Monopoly & Monopoly Power 08-01-25 Flashcards
1
Q
How Many Firms in a Monopoly Market?
A
> 1
2
Q
What is The Firm in a Monopoly Market Called?
A
> Monopolist
3
Q
What is Monopoly Power?
A
> Monopoly Ability to Raise & Maintain Price Above Level Prevailing Under Perfect Competition
4
Q
Give The Diagram For Short-Run & Long-Run Profit Maximisation in Monopoly Market…
A
5
Q
Where is The Equilibrium Level of Output in Monopoly Market?
A
> MR = MC (Q1)
6
Q
Where is The Profit-Maximising Price?
A
> B (P1)
7
Q
Where is Profit Maximised (AR & MR)?
A
> Largest Difference Between AR & MR
8
Q
What Do Monopolists Preserve in Short AND Long-Run?
A
> Abnormal Profits
9
Q
What Are Abnormal Profits Also Called in Monopoly Markets?
A
> Monopoly Profits
