Chapter 10: Understanding monopolies Flashcards
1
Q
Barriers to entry
A
restrictions that make it difficult for new firms to enter the market p310
2
Q
Monopoly Power
A
a measure of a monopolists ability to set the price of a good or service p310
3
Q
Price Maker
A
has some control over the price it charges p313
4
Q
Market Failure
A
occurs when there is an inefficient allocation of resources in a market p322
5
Q
Natural Monopoly
A
occurs when a single firm has lower costs than any potential smaller competitor p311
6
Q
Rent Seeking
A
occurs when resources are used to secure monopoly rights through the political process p325
