Chapter 50 Flashcards
1
Q
What is a monopolist?
A
A monopolist is a firm which controls all the output in a market.
2
Q
What is a monopoly or pure monopoly?
A
This is a market structure, where one firm supplies all output in the market without facing competition because of high barriers to entry to the market.
3
Q
Explain monopoly power.
A
Monopoly power exists when firms are able to control the price they charge for their product in a market.
4
Q
Explain price discrimination.
A
This is where firms charge a different price for the same good or service in different markets.
