monopoly

Question 1

what are the characteristics of monopoly

Answer 1

single seller
product has no close substitues/ unique product
barriers to entry prevent new firms

Question 2

Because a monopoly is a single seller, it

Answer 2

is one with the industry
price-maker , influence price
supply to the whole market
faces no compeittion, exercise market power

Question 3

What are the kinds of barriers to entry

Answer 3

natural

legal

Question 4

What are the legal barriers to entry

Answer 4

public franchise
government license
patent
copyright

Question 5

What is a public franchise

Answer 5

exclusive right

supply a good or service

Question 6

What is a govt. license?

Answer 6

controls entry into certain occupations and industries

Question 7

what is a patent

Answer 7

exclusive right to an inventor of a product or service

Question 8

What is a copyright

Answer 8

exclusive right granted to
author
composer
literary, musical dramtic artistic work

Question 9

Nautural barriers exist in what industry

Answer 9

natural monopoly

Question 10

How is there a natural barrier in natural monopoly?

Answer 10

large scale production, internal economies of scale
LRAC decreases
can supply whole market at lower price
new entrants have to produce at large scale
large scale is risky and costly