Page 156 key terms Flashcards
1
Q
Monopoly
A
a market dominated by a single seller
2
Q
economies of scale
A
factors that cause a producers average cost per unit to fall as output rises
3
Q
natural monoploy
A
a markert that runs most efficiently when one large firm supplies all of the output
4
Q
government monopoly
A
a monopoly created by the government
5
Q
patent
A
a license that gives the inventor of a new product the exclusive right to sell it for a certain period of time
6
Q
Franchise
A
the right to sell a good or service within an exclusive market
7
Q
license
A
a government issued right to operate a business
8
Q
price discrimination
A
a division of customers into groups based on how much they will pay for a good
9
Q
market power
A
the ability of a company to change prices and output like a monopolist
