Monopoly Flashcards

1
Q

What are some monopoly assumptions?

A
  • Monopolist is a price maker

- Market entry is blocked

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2
Q

What is the market structure of a monopoly?

A
  • One large seller
  • High barriers to entry
  • Differentiated product
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3
Q

What is monopoly profit maximising output?

A

When MR = 0

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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

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