Monopoly and Market Structures

This set of flashcards covers key vocabulary and concepts related to monopoly, market structures, and pricing strategies discussed in the lecture notes.

Monopoly

A market structure characterized by a single seller, unique product, no close substitutes, and extreme barriers to entry.

Price Discrimination

The practice of selling the same good or service to different people at different prices, illegal if intended to injure competition.

Monopolistic Competition

A market structure that has characteristics of both monopoly and perfect competition, with many competitors and some market power.

Oligopoly

A market structure dominated by a few large firms that are interdependent in pricing and output decisions.

Market Power

The ability of a firm to influence the price of a good or service in the market.

Cost Curve

A graphical representation of the costs of production as a function of total output.

Kinked Demand Curve

A model used in oligopoly where the demand curve has a 'kink,' reflecting different price elasticity for price increases and decreases.