Monopoly Flashcards
(7 cards)
1
Q
Pure Monopoly
A
When there’s only one dominant firm in the market with 100% of the market share
2
Q
Legal Monopoly
A
A firm with over 25% of the market share
3
Q
Price Maker
A
A firm that’s able to set or make their own price (e.g. Microsoft who were able to set a very high price for their software because they were the only firm consumers could buy from)
4
Q
Monopoly Power (Market Power)
A
The power a firm has to set or make their own price i.e. become a Price Maker
5
Q
Factors Influencing Monopoly Power
A
The Number of Firms, Degree Of Barriers To Entry, Product Differentiation & Technology.
6
Q
Barriers To Entry
A
Factors that prevent new firms from Entering a market e.g. high startup costs, patents and brand loyalty
7
Q
A
