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network externality
A(n) ________ is the value of a product to the consumer increases with.
deadweight loss
The ________ from monopoly is a measure of the inefficiency from monopoly; equal to the decrease in market surplus.
natural monopoly
A(n) ________ is a market in which the economies of scale in production are so large that only a single large firm can earn a profit.
market power
A(n) ________ where the firm must have some control over its price, facing a negatively sloped demand curve for its product.
Rent
________- seeking is a process of using public policy to gain economic profit.
monopoly
A(n) ________ is a market in which a single firm sells a product that does not have any close substitutes.
patent
A(n) ________ is an exclusive right to sell a new good for some period of time.
Flexjoints competitors
________ will need 3 years to develop and produce their own versions of the drug, so if Flexjoint isnt protected by a patent, its monopoly will last only 3 years.
Price discrimination
________ is the practice of selling a good at different prices to different consumers.
Rent
________- seeking is inefficient because it uses resources that could be used in other ways.
Market power
________ is the ability of a firm to affect the price of its product.
Marginal revenue
_____________________ = new price + (slope of demand curve X old quantity)
barrier to entry
A _____________ is something that prevents firms from entering a profitable market.
Note
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