Chapter 9

Chapter 9 - and increase price Rent seeking – Activities...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 9 – 12/6/07 Barrier to entry – any impediment that prevents new firms from entering an industry and competing on an equal basis with existing firms Patent – a legal barrier to entry that grants its holder the exclusive right to sell a product for 20 years from the date the patent application is filled Innovation – The process of turning an invention into a marketplace product Price Maker – a firm must find the profit maximizing price when the demand curve for its output slopes downward Deadweight Loss of Monopoly – net loss to society when a firm uses its market power to restrict output
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: and increase price Rent seeking – Activities undertaken by individuals or firms to influence public policy in a way that will increase their incomes Price Discrimination – Increasing profit b charging different groups of consumers different prices when the prices differences are not justifies by differences in production costs Perfectly discriminating monopolist – A monopolist who charges a different price for each unit sold; also called the monopolist’s dream...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online