Monopoly Flashcards

0
Q

Monopoly

A

Firm that is the sole seller of a product without close substitutes

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1
Q

Imperfect competition

A

Exists where firms are able to differentiate their product in some way and so can have some influence over price

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2
Q

Barriers to entry

A

Anything which prevents a firm from entering a market or industry

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3
Q

Patent

A

Right conferred on the owner to prevent anyone else making or using an invention or manufacturing process without permission

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4
Q

Copyright

A

Right of an individual or organisation to own things they create in the same way as a physical object to prevent others from copying or reproducing the creation

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5
Q

Natural monopoly

A

Arises because a single firm can supply a good or service to an entire market at a smaller cost than could 2 or more firms

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6
Q

What is price discrimination

A

The business practice of selling the same good at diff prices to diff customers

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7
Q

Arbitrage

A

Process of buying a good in one market at a low price and selling it in another market at a higher price in order to profit from the price difference

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8
Q

Perfect price discrimination

A

Situation where monopolist knows exactly the willingness to pay of each customer and can charge each customer a different price

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9
Q

How might govs respond to the problem of monopoly

A

Trying to make monopolised markets more competitive
Regulating the behaviour of the monopolies
Turning some private monopolies into public enterprises
Doing nothing

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