module 9 LearnSmart ECO2023

a monopoly is not really a monopoly when there are no _ to entry

barriers

the difference between the economic surplus when the market is at its competitive equilibrium and the economic surplus when the market is not in equilibrium is the

deadweight loss

the efficiency loss resulting from a monopolistic market

deadweight loss

total revenue minus the implicit costs and explicit costs of production is _ profit

economic

zero _ profit is the revenue needed for a company to break even and meet operating costs without a loss

economic

if the marginal revenue associated with selling one more unit of output is positive, the demand is

elastic

marginal revenue is the

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

which are characteristics of a perfectly competitive market?

large number of sellers no control over price

when a firm has a loss, the total revenue is _ than the total cost

less

monopolies produce _ output than competitive markets and are likely to hire _ labor

less less

for a monopoly, the _ revenue curve is located below the _ curve

marginal demand

one of the roles of a government is to limit the market power of monopolies or even to eliminate them entirely due to

market inefficiencies

consumer surplus is the difference between the

maximum price consumers are willing and able to pay for a good or a service and the price they actually pay

a person who invents the ability to time travel will likely operate as a _ , because there would be no substitutes and entering that market would be difficult for anyone else

monopoly

a pure _ has the overall demand to itself, because it is the only seller in a market

monopoly

for the profit-maximizing level of output, the price charged by a _ is not just different but greater than marginal revenue

monopoly

it is unlikely for a pure _ to be productively efficient

monopoly

determine whether the market can reasonably be characterized as a monopoly satellite radio wheat cereal tap water in a city admission to Yellowstone park

monopoly not not monopoly monopoly

which are characteristics of a contestable firm?

no real barriers to entry a single firm

_ efficiency is producing output at the lowest possible average total cost of production

productive

all firms maximize _ by producing the quantity of output at which the marginal revenue is equal to the marginal cost

profits

equals price times quantity

total revenue

an argument can be made that the economic profits generated by pure monopolies have two positive impacts on dynamic growth

when a monopoly earns an economic profit, it has the financial capital to develop more innovations potential economic profits give firms and entrepreneurs incentives to develop new production processes and products