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