Micro A2 - monopoly

Question 1

Monopoly

Answer 1

A market where one business has over 25% of the market share

Question 2

characteristics of a monopoly

Answer 2

Small number of firms.
Pricing power
High barriers to Entry
Higher price power
High profits

Question 3

Profit maximisation equilibrium

Question 4

Diagrammatical analysis of Profit maximisation equilibrium

Question 5

Third degree price discrimination

Answer 5

Where you charge different prices for the same product.

firms sets different prices for segment A (inelastic demand) and segment B (elastic demand) segment C is a combination of both A&B

Question 6

Necessary conditions for Third degree price discrimination

Question 7

Diagrammatical analysis of Third degree price discrimination

Question 8

Cost to consumers of third degree price discrimination

Question 9

Benefits to consumers of third degree price discrimination

Question 10

Costs to producers of third degree price discrimination

Question 11

Benefits to producers of third degree price discrimination

Question 12

Cost and benefits of monopoly’s to firms

Question 13

Cost and benefits of monopoly’s to consumers

Question 14

Cost and benefits of monopoly’s to employees

Question 15

Cost and benefits of monopoly’s to suppliers

Question 16

Natural monopoly

Question 17

monopsony

Question 18

Identify Costs and benefits of a monopsony to firms, consumers, employees and suppliers