Monopoly

Maximizaiton of profits is when

MC=MR

Monopoly is a market structure characterized by:

a market with a barrier entry A single seller The firm having significant price control a good or service for which there are no close subsitiuse

the difference between the economic surplus when the market is at its competitive equilibrium and the economic surplus when the market is not at its equilibrium is the:

deadweight loss

A market price ______________, all else held constant, a profit-maximizing firm can afford to expand its production.

increases

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

A _____________ produces less output than a competitive firm, and therefore, is likely to hire less labor

monopoly

A person who invents the ability to time-travel will likely operate as a ______________________, since 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

which of the following are characteristics of a perfect competitive market

no control over price large number of sellers

The price that occurs where the demand and average total cost curves cross is called the:

normal profit price

when regulators require a monopoly to charge the normal profit price :

the monopoly has little incentive to reduce its costs of production the monopoly has zero economic profit