1
Q
what do legal barriers include and what do they enable?
A
Legal barriers include patents, trademarks and copyright. They enable incumbent firms to legally prevent new firms from stealing their ideas and entering their market.
2
Q
what is dynamic efficiency?
A
how changing technology improves output potential over time
3
Q
what is a natural monopoly?
A
A natural monopoly is when it’s naturally most efficient if only one firm is in the market.
4
Q
what are the two reasons why natural monopolies like tfl exist?
A
high sunk costs, huge economies of scale
5
Q
A
Micro Economics 2
flashcards
Decks in class (23)
# Cards
-
1) law of diminishing returns8
-
2) fixed and variable costs12
-
3) marginal and average cost curves4
-
lesson 1 - recap10
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lesson 2 - business growth37
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lesson 3 - theory of the firms: costs26
-
lesson 4 - theory of the firm: revenues36
-
uplearn revenue10
-
uplearn efficiency3
-
5) long run costs and returns to scale7
-
6) economies and diseconomies of scale23
-
7) revenue MR AR TR11
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8) profit - normal and supernormal9
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9) objectives of firms profit max rev max sales max satisficing23
-
demand for labour, supply of labour, market wage determination13
-
wage differentials and labour market imperfections11
-
monopsony labour market8
-
trade unions in a monopsony labour market3
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oligopoly16
-
Evon Plus Dal: All Of Government Interventio27
-
Costs And Oil12
-
uplearn: business growth4
-
uplearn monopoly5
