Monopoly and Market Power

These flashcards summarize key vocabulary and concepts related to monopolies and market power based on the provided lecture notes.

Monopoly

single firm sells a product for which there are no close substitutes.

Monopoly Power

ability of a buyer or seller to affect market price, characterized by a downward sloping demand curve.

Monopsony

A market structure with only one buyer.

Natural Monopoly

market where it is most efficient for a single firm to produce the entire industry output

Patent/Copyright

Legal rights that exclude others from making, using, or selling an invention.

Government Regulation

Laws that prevent competition by granting licenses or rights to have a monopoly.

Profit Maximizing Output Decision

The point where marginal cost equals marginal revenue