Flashcards in Discovery Unit 11 Glossary Deck (14):
Market structure in which one firm produces all of the output in a market.
Involves many firms competing against each other in the sales of somewhat distinctive products. Examples include clothing stores that sell different styles of clothing and restaurants that offer differing cuisines. Monopolistic competition even includes distinct producers who sell itemsﾗsuch as gold balls or beerﾗthat may be somewhat similar but differ in public perception due to branding and advertising.
Market structure in which a small number of firms, perhaps just two or three, sell all of the output.
Gives the inventor the exclusive legal right to make, use, or sell the invention for a limited time. In the United States, exclusive patent rights last for 20 years.
A word, name, symbol, or device that indicates the source of a good(s), such as ﾓChiquitaﾔ on bananas, the name ﾓChevroletﾔ on cars, or the Nike ﾓswooshﾔ
that appears on shoes and other athletic gear. Although trademarks do not restrict the creation of close substitutes, they do prevent others from selling similar products using the same trademark.
Offers legal protection of original works of authorship for the life of the author plus 70 years.
Arise when average costs decline over the range of production that satisfies market demand. As a result, one firm is able to produce the total quantity
demanded in the market at lower cost than two or more firms. Therefore, splitting up the natural monopoly would raise the average cost of production and force customers to pay more.
Occurs when given the available factors of production and technology, it is impossible to produce more of one good without decreasing the quantity that is
produced of another good.
Term that describes monopolists. That is, a monopolist does not simply take the market price as given but sets its own price within the confines of consumersﾒ willingness to pay, shown by the demand curve. Not only does a monopoly have the market power to set its own price, in some cases it can also charge different prices for the same product.
A firm engages in price discrimination when it charges different prices to distinct customers based upon variances in willingness to pay.
perfect price discrimination
Occurs when the seller can identify the price that each buyer is willing to pay.
Occurs when two formerly separate firms combine to become one single firm.
Occurs when one firm purchases another.