Flashcards in Week 5- Monopoly textbook Deck (11):
1 firm in the market. Can charge whatever place they want.
Barriers to entry___
legal, market forces that discourage potential competitors from entering a market.
controlling a scarce physical resource.
law prohibit competition.
Ex: Only US Postal Service is legally to deliver first class mail.
inventor the exclusive legal right to make, use or sell invention.
Trademark is an___
identifying symbol or name for a particular good.
Ex: Chevy cars.
Copyright is a___
form of protection by law for original works of authorship.
- even if the company does not have patent or invention, firms are not allowed to steal their secrets.
Ex: formula for Cola-Cola.
firm uses the threat of sharp price cuts to discourage competition.
Monopoly's profit and output___
Same framework as regular competitive firm.
Profit = TR – TC.