Monopoly Flashcards
1
Q
What are some monopoly assumptions?
A
- Monopolist is a price maker
- Market entry is blocked
2
Q
What is the market structure of a monopoly?
A
- One large seller
- High barriers to entry
- Differentiated product
3
Q
What is monopoly profit maximising output?
A
When MR = 0
4
Q
What is consumer/producer surplus?
A
The difference between the price that the consumer/producer is willing to pay/sell for and what the price actually is
