1
Q
What assumptions do economists make to model monopolies
A
Only one firm in the market
Profit maximisers
High barriers to entry
SNP
2
Q
What are the 4 barriers to entry
A
Legal barriers
Sunk costs
Economies of scale
Brand loyalty
3
Q
Legal barriers examples
A
Patents
Copyrights
Trademarks
4
Q
What are sunk costs
A
Money cant be recovered if a firm leaves the market. This deters firms from entering the market as there is a high cost of failure.
Eg advertising
5
Q
What is a contestable market
A
A market with low barriers to entry and exit
Easy for new firms to enter
Micro
flashcards
Decks in class (50)
# Cards
-
MONOPOLY27
-
Economic Methodology6
-
Positive And Normative Statements2
-
The Economic Problem2
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PPF4
-
Introduction To Demand4
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PED12
-
Shifts In Demand6
-
Income Elasticity Of Demand7
-
Cross Elasticity Of Demand5
-
Introduction To Supply6
-
Price Elasticity Of Supply PES26
-
Shifts In Supply2
-
Market Failure Introduction2
-
Negative Externalities29
-
Positive Externalities10
-
Market Structures Introduction2
-
Perfect Competition10
-
Specialisation And Division Of Labour And Exchange13
-
Types Of Government Failure10
-
Partial Vs Complete Market Failure7
-
Factor Immobility6
-
Public Goods12
-
Supply And Demand Shifts2
-
Inequitable Distribution7
-
Market Interrelationship7
-
Consumer Behaviour16
-
Information Gaps6
-
Consumer And Producer Surplus8
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Change In Consumer And Producer Surplus2
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Merit And Demerit Goods4
-
Monopoly Power4
-
Revenue15
-
Costs29
-
Profit4
-
Types Of Efficiency8
-
Business Objectives5
-
Business Growth5
-
Contestability5
-
Monopolestic Competition2
-
Technological Change5
-
Regulation And Competition Policy29
-
Oligopoly16
-
Wage Discrimination2
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Labour Market Introduction3
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Labour Market Elasticities12
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Labour Market Shifts6
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Monopsony9
-
Poverty7
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Inequality11
