Th3.4: Characteristics of Monopoly Flashcards

1
Q

Where does pure monopoly exist?

A

where one firm is the sole seller of a product in a market

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2
Q

Pure monopoly rarely exists but how can a firm be legally considered as having monopoly power?

A

if it has more than 25% of the market

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3
Q

What does the model assume?

A

there is only one firm in the industry, they short run profit maximise and there are high barriers to entry

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