Econ Final pt 2 monopoly

Has one producer that is does not make a differentiated product

Monopoly

Has few producers that may or may not make a differentiated product

Oligopoly

Has many producers that do not make a differentiated product.

Perfect competition

Has many producers that do make a differentiated product.

Monopolistic competition.

Monopolist

A firm that is the only producer of a good with no close substitutes.

Monopoly

A perfectly competitive market only if there are Manu producers who all produce the same good

The ability for a firm to raise prices

market power

A monopoly created and sustained by increasing returns to scale is called a?

Natural Monopoly

Network externality

The value of a good or service to an individual increases as more individuals use the same good or service. The firm with the largest network of customers may become a monopolist by attracting new customers.

A monopolist’s marginal revenue curve is always_____ the demand curve because of the price effect

Below

In what type of conditions is P > MR = MC?

Monopoly condition

Who doesn’t have supply curves? They control prices, there is no set relationship between price and quantity supplied.

total surplus with monopoly

______ is when each customer pays the the max price they are willing to. There is no consumer surplus as it all goes to profit and has no inefficiency's.

Perfect price discrimination