Section 2

Question 0

Cartel

Answer 0

Is a group that acts together to set prices and limit output.

Question 1

Monopoly

Answer 1

Occurs when there is only one seller of a product that has no close substitutes.

Question 2

Price maker

Answer 2

Is a film that does not have to consider competitors when setting the prices of its products.

Question 3

Barrier to entry

Answer 3

Makes it hard for a new business to enter a market.

Question 4

Natural monopoly

Answer 4

Occurs when the costs of production are lowest with only one producer.

Question 5

Government monopoly

Answer 5

Exists when the government either owns and runs the business or authorizes only one producer.

Question 6

Technical monopoly

Answer 6

Occurs when a film controls a manufacturing method, invention, or type of technology.

Question 7

Geographic monopoly

Answer 7

Occurs when there are no other producers within a certain region.

Question 8

Economies of scale

Answer 8

Occurs when the average cost of production fails as the producer grows larger.

Question 9

Patent

Answer 9

Gives an inventor the exclusive property rights to that invention or process for a certain number of years.