Chapter 13 Flashcards
1
Q
The single supplier of a product that has no close substitute
A
Monopoly
2
Q
A firm that can produce at a lower cost than a number of smaller firms can
A
Natural monopoly
3
Q
Setting price equal to average total cost
A
Average cost pricing
4
Q
The practice of charging different consumers different prices for the same good or service
A
Price discrimination
5
Q
The maximum amount a customer would be willing to pay for a unit of output
A
Reservation price
6
Q
When producers charge different prices during different periods because the demand and the cost of producing a product vary over time
A
Peak load pricing
