monopoly #12

for a monopoly, the marginal revenues per unit fall ___ the price per unit when the price ___, the monopoly gives up some revenue or units it could have sold at higher prices

below, falls

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 level of profit that occurs when the total revenue is less than the total cost is a

loss

the level of profit that occurs when the total revenue is less than the total cost is a ___

loss

price discrimination is only possible when a firm is a price

maker

__efficiency refers to the rate of technological progress and innovation in the economy

dynamic

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

elastic, because this would increase total revenue

a business will charge a lower price to the group with the relatively more __ demand and a higher price to the group with the relatively more __ demand

elastic; inelastic

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

the marginal revenue is the

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

when a firm has a loss, the total revenue is___ than the total cost

less

because monopolies have ____ power and can influence the price of the goods they sell, they tend to produce ___ output and charge a ___ price that would prevail in a __- equilibrium

market; lower; higher; competitive

___ reduce the availability of goods and services and consumers ability to buy those goods

monopolies

a market structure characterized by a single seller is a___

monopoly

because monopolies have market power and can influence the price of the good they sell, they tend to restrict ___ and change a higher _____ than would prevail in a competitive equilibrium

output, price

a monopoly should produce output until the marginal ___ equals the marginal__

revenue; cost

productive efficiency is

using the fewest resources possible to produce a good or service

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 proits give firms and entrepenuers incentives to develop new production processes and products