pure monopoly
Monopoly is a market structure characterized by
a good or service for which there are no close substitutes, a single seller, the firms having significant price control, a market with barriers to entry
For a monopoly, the marginal revenue per unit fall ___ the price per unit, because when the price _____, the monopoly gives up some revenue on units
below, decrease
_____ markets maximize the availability of goods and services and the consumer's ability to buy them
competitive
As the market price decreases, all else held constant, a profit maximizing firm will ______ its production
decrease
a monopoly will charge consumers the price that they are willing and able to pay for the amount of output available which is shown on the ____________
demand curve
total revenue minus the implicit costs and explicit costs of production is _____ profit
economic
if the marginal revenue associated with selling one more unit of output is positive, the demand is
elastic, because this would increase total revenue
marginal revenue is
extra or additional revenue associated with the production of an additional unit of output
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
The practice of selling the same good or service to different consumers at different prices is known as
price discrimination
total revenue equals
price times quantity
when a firm has a loss, the total ____ is less than the total ____
revenue, cost
if a _______wants to sell more units, it must lower the price for every unit it sells
seller
in economics we refer to a situation in which there is only one firm but no real barriers to entry as a _____ market
contestable
Price discrimination is only possible when a firm is a price _____
maker
________ reduce the availability of goods and services and consumers ability to buy those goods
monopolies
T/F There are a few important exceptions in which monopolies are actually encouraged to incentivize positive outcome
true
A company can break even and meet operating costs when it earns ________ economic profit
zero
normal profit is also known as _____ ________ profit
zero economic
a perfectly ____ market is characterized by a larger number of ____ producing a ____ product and taking the market ____ as given, with easy entry and exit into the market
competitive, sellers, standardized, price