uplearn monopoly Flashcards
1
Q
what do legal barriers include and what do they enable?
A
Legal barriers include patents, trademarks and copyright. They enable incumbent firms to legally prevent new firms from stealing their ideas and entering their market.
2
Q
what is dynamic efficiency?
A
how changing technology improves output potential over time
3
Q
what is a natural monopoly?
A
A natural monopoly is when it’s naturally most efficient if only one firm is in the market.
4
Q
what are the two reasons why natural monopolies like tfl exist?
A
high sunk costs, huge economies of scale
5
Q
A
