Mirco Module 9 LearnSmart

Monopoly

A market structure characterized by a SINGLE seller, producing a good/service that has NO substitutes, and and a relatively blocked entry. They are PRICE MAKERS (ex: Time travel, utilities)

For a monopoly, the marginal revenues per unit fall _____ the price per unit because when the price ______, the monopoly gives up some revenue on units it could have sold at higher prices.

Below, lowers

A monopoly will charge consumers the price that they are willing and able to pay for the amount of output available which is shown along the_____curve

Demand

The ____ curve faced by a perfectly competitive firm is perfectly elastic

Demand

If selling another unit of output increases revenue marginal, revenue is_____

Economic

Total revenue minus the implicit costs and explicit costs of production is_____profit

Economic

The demand curve faced by a perfectly competitive firm is perfectly ______

Horizontal, elastic

As the market price____, all else held constant, a profit-maximizing firm can afford to expand its production

Increases

Monopolies produce____ output than competitive markets and are likely to hire___labor.

Less, less

The extra or additional revenue associated with the production of an additional unit of output is the____revenue

Marginal

For a monopoly, the marginal revenue is below the demand curve because: - the total revenue curve lies below the demand curve. - the monopoly has to lower the price on all units to sell more. - the monopoly sells its goods at a lower price than that at which they are demanded. - the demand for a monopolistic good is never satisfied at any given price.

The monopoly has to lower the price on all units to sell more

In economics, we refer to a situation in which there is only one firm but no real barriers to entry as a(n)____market

contestable

A pure monopoly has the overall market ____ to itself because it is the only seller

demand

A perfectly competitive market is characterized by a large number of sellers producing a standardized product and taking the market price as given with easy ____and___ into the market

entry, exit

Total revenue minus the ___costs and ___costs of production is economic profit

implicit, explicit

The demand faced by a pure____is downward sloping

monopoly

If a monopoly wants to sell more units, it must lower the____for every unit it sells

price

All firms maximize____by producing the quantity of output at which the marginal revenue is equal to the marginal cost.

profit

Profit equals total ___ minus total____

revenue, cost

A(n) _____ produces less output than a competitive firm and therefore is likely to hire less labor.

Monopoly