Chapter 13: Monopoly

Patent

A ____________ gives an inventor a temporary monopoly in the use or sale of an invention.

Copyright

A ____________ gives the creator of a literary or artistic work sole rights to profit from that work.

Maximized

For a monopoly, profit is ____________ at the Q where MR = MC.

More

If customers have low price elasticity, charge them __________.

Regulation

Price ____________, when imposed on a monopolist, does not create shortages if it is not set too low.

Decreases

Price effect ____________ total revenue for monopolists.

Market Power

This is the ability of a firm to raise prices.

Quantity Effect

This means that one more unit is sold, increasing total revenue by the price at which the unit is sold.

Price Effect

This means that to sell the last unit, the monopolist must cut the market price on all units sold.

Profit

Under perfect price discrimination, the firm captures all consumer surplus as ___________.

Price Discrimination

____________ ____________ is when firms charge different prices to different consumers for the same good.

Monopolist

____________ is a firm that is the only produce of a good with no close substitutes.

Single-Price

____________ monopolists offer their products to all consumers at the same price.

Public (Government)

____________ ownership is one solution to natural monopolies, but it generally results in poorly run companies.

Barriers

____________ to entry are essential for monopolies.