Chapter 15 Flashcards
1
Q
Monopoly
A
A firm that is the only seller for a good when there are no close substitutes
2
Q
Example of monopoly markets
A
Small seafood restaurant in small town
3
Q
Patent
A
Gives a firm the legal right to a new product for 20 years
4
Q
Copyright
A
Provide the legal right to produce and sell creative works
5
Q
Public franchise
A
A firm that is the only legal provider for a good (government)
6
Q
Network externalities
A
The usefulness of a product increases with the number of consumers who use it
7
Q
Natural monopoly
A
When economies of scale are so large that one firm can supply the entire market at a lower ATC
8
Q
Collusion
A
An agreement among firms to change the same price or otherwise not to compete
9
Q
Antitrust laws
A
Laws aimed at eliminating collusion and promoting competition among firms
