Chapter 9 Flashcards
Allocative efficiency
Producing the optimal quantity of some output. The quantity were marginal benefit to society of one more unit just equals the marginal cost
Barriers to entry
The legal, technological ,or market forces that may discourage or prevent potential competitors from entering a market
Copyright
A form of legal protection , preventing copying, for commercial purpose,original works of authorship (including books and music)
Deregulation
Removing government controls over setting prices and quantities in certain industries
Intellectual property
The body of law , including patents , trademarks , copyright , and trade secret laws that protect the right of inventors to produce/sell inventions
Legal Monopoly
Legal prohibitions against competition, such as regulated monopolies and an intellectual property protection
Marginal profit
Profit of one more unit of output (marginal revenue - marginal cost)
Monopoly
A situation in which one firm produces all the output in a market
Natural monopoly
Economic conditions in the industry, for example: Economies of scale or control of a critical resource that limit effective competitive
Patent
A government rule that gives the inventor the exclusive legal right to make, use, or sell the invention for a limited time
Predatory pricing
When the existing firm uses sharp but temporary price cuts to discourage new competition
Trade secrets
Methods of production kept secret by the producing firm
Trademark
And identifying symbol/name for a particular good and can only be used by the firm that registered that trademark
