Th3.4: ^^ Consumers Flashcards

1
Q

With a natural monopoly…

A

consumers tend to be better off than if there was competition

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2
Q

What will happen when firms enjoy economies of scale?

A

they will be more efficient and customers will enjoy a higher consumer surplus

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3
Q

Why may monopolists do due to cross subsidisation?

A

produce an increased range of goods or services

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4
Q

What will the use of price discrimination allow?

A

survival of a product or service, and benefits some customers (those in cheap markets) whilst is negative for others - e.g it is said economy flights are funded by business flights

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5
Q

What may consumers see due to a lack of competition?

A

see a poorer quality service and may pay higher prices

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6
Q

Since there is only one firm producing the good, what might consumers see?

A

that there is less choice

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