Monopoly Flashcards
(5 cards)
1
Q
What is a monoply?
A
Monopoly is a situtation where there is one dominant seller in a market
2
Q
How many features are there in Monopoly market?
A
4 (One dominant business in whole market, Unique product, Price maker, Barriers to entry)
3
Q
What are the barriers to entry?
A
Legal barriers, Patents, Marketing budgets, Technology, High start-up costs
4
Q
Advantages of monopoly
A
High efficiency, Innovation, Economies of scale
5
Q
Disadvantages of monopoly
A
Higher prices, restricted choices, lack of innovation, inefficiency
