Chapter 15 - Monopoly

Social planners

________ focus on the profit earned by the firm's owners, as well as the benefits received by the firm's consumers.

Arbitrage

________ is a process where good is bought in one market at a low price but sold to another market at an even higher price to profit off the price difference.

senior citizens

Children and ________ are charged lower prices in movie theaters.

deadweight losses

The ________ caused due to a monopoly are similar to the ________ that are caused due to taxes.

Discount coupons

________ are offered in newspapers, magazines, or online to the public.

Airplane seats

________ are sold at different prices to separate business travelers from leisure ones.

competitive enterprise economy

A(n) ________ will produce the largest possible income from a given stock of resources.

Monopoly

________: a firm that is the sole seller of a product without any close substitutes.

Sherman Antitrust Act

The ________ was passed by Congress in 1890, reducing the market power of dominating trusts at that time.

Vertical mergers

________ are mergers between firms at different stages of the production process.

Horizontal mergers

________ are mergers between two firms in the same market.

Clayton Antitrust Act

The ________ was passed in 1914, causing the government's powers to grow and authorizing private lawsuits.

Price discrimination

________: the business practice of selling the same good at different prices to different customers.

distribution of water

The ________ is an example of a natural monopoly.

output effect

The ________ shows that if more output is sold, Q will be higher, causing the total revenue to increase.

price effect

The ________ shows the prices falling, meaning P is lower, so the total revenue decreases.

Monopoly

_____________: a firm that is the sole seller of a product without any close substitutes.