ch 15 terms Flashcards
1
Q
define monopoly
A
market sales all from one firm
barrier to entry
2
Q
define barrier to entry
A
fundamental cause of monopoly
potential competitors can’t compete
3
Q
what are the three barriers to entry
A
monopoly resources
govt regulation
natural monopoly
4
Q
define monopoly resources
A
key resource owned by one firm
rarely actually causes monopoly
5
Q
define govt regulation
A
govt gives one firm exclusive right to produce
ex. bc hydro
6
Q
define natural monopoly
A
we can produce at an incomparably low cost
economies of scale
often impacted by market size
7
Q
monopoly vs perfect competition demand
A
competitive —
monopoly aka market \
