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