75 Advantages & Disadvantages of Monopolies 10-01-25 Flashcards
1
Q
Give The Diagram For Economies of Scale From Monopoly…
A
2
Q
When is Economies of Scale From Monopoly a Positive Outcome?
A
> Passed Onto Consumers
Abnormal Profits Funds R&D
3
Q
Monopolies Enable More to be Supplied at Lower…
A
> Unit Cost (C1)
4
Q
Give The Diagram For Inefficiencies From Monopoly…
A
5
Q
What Inefficiencies Do Monopoly Create (Resource Misallocation)?
A
> Allocative Inefficiency
Productive Inefficiency
6
Q
What Does a Monopoly Opt For?
A
> Profit Satisfice Over Profit Maximise
7
Q
Why is The Monopoly Productively Inefficient?
A
> ATC Not at Lowest Point (C)
8
Q
Why is The Monopoly Allocatively Inefficient?
A
> P > MC (At A)
