Quiz Flashcards
Natural monopoly
Cost goes down as the firm grows
Govt sanction monopoly
The govt gives exclusive rights over resource to a firm
Oligopoly
A market that is dominated by a few firms
Monopolistic competition
A type of market where there are many sellers of a differentiated market
Market power
The ability to influence the price of a product or resource
What are the four types of monopolies
- Natural monopoly
- Government sanction monopoly
- oligopoly
- monopolistic competition
Three positive function involvement in government
Private property rights
Common property
Public goods
3 dangers in involvement
Rational ignorance of voters
Special interest effects
Short sightedness
Broad danger in involvement
Political institutions make the self interest of an individual in govt come into conflict with public interest
Cost goes down as the firm grows
Natural monopoly
The government gives exclusive rights over resource to a firm
Government sanction monopoly
A market that is dominated by a few firms
Oligopoly
A type of market where there are many sellers of a differentiated market
Monopolistic competition
