Chapter 10: Understanding Monopoly Flashcards
1
Q
a measure of a monopolist’s ability to set the price of the good or service
A
monopoly power
2
Q
restrictions that make it difficult for firms to enter a market
A
barriers to entry
3
Q
occurs when a single large firm has lower costs than any potential smaller competitor
A
natural monopoly
4
Q
has some control over the price it charges
A
price maker
5
Q
occurs when there is an inefficient allocation of resources in a market
A
market failure
6
Q
occurs when resources are used to secure monopoly rights through the political process
A
rent seeking
