Chapter 14 Flashcards
1
Q
What is a monopoly?
A
Monopoly is a market structure in which one firm makes up the entire market
2
Q
Marginal revenue
A
Marginal revenue (MR) is the change in total revenue associated with a change in quantity
3
Q
What is marginal cost?
A
Marginal cost (MC) is the change in total cost associated with a change in quantity
4
Q
When does price discriminates?
A
When a monopolist price discriminates, it charges different prices to different individuals or groups of individuals
5
Q
what is a natural monopoly?
A
Natural monopoly is when a single firm can produce at a lower cost than can two or more firms
