19 Market Power Lecture Notes
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This set of flashcards covers key concepts related to market power, competition, and economic principles discussed in the lecture.
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11 Terms
Market Power
The ability a firm has to raise the price it charges without losing all its business.
Perfect Competition
A market structure characterized by a single good of uniform quality, many buyers and sellers, none of whom can control the price.
Price-taker
A firm that cannot influence the market price and must accept it as given.
Monopoly
A market structure where there is a single seller of a good.
Oligopoly
A market structure where there are few large sellers of a good.
Monopolistic Competition
A market structure where there are many sellers offering differentiated products.
Marginal Revenue (MR)
The additional revenue a firm gains from selling one more unit of a good.
Output Effect
The revenue gained from selling an additional unit.
Discount Effect
The loss in revenue per unit when a firm lowers its price to sell additional units.
Antimonopoly Rules
Laws designed to promote competition and prevent monopolies in the market.
Natural Monopoly
A market structure where a single firm is most efficient to serve the entire market.
Note 
Flashcards (31)