Chapter 9: Monopoly

Question 1

What is a monopoly?

Answer 1

a firm that is the sole seller of a product with no close substitutes

Question 2

What are price effects and output effects?

Answer 2

the effects on revenue of changing the price an the quantity produced

Question 3

What are barriers to entry?

Answer 3

factors that prevent or impede newcomers into a market

Question 4

What is price discrimination?

Answer 4

the business practice of selling the same good at different prices to different customers