ECON 203 Final Review

ECON 203 Final Review - 11:59:00 PM Chapter 10 Monopolies...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
13/12/2007 02:59:00 Chapter 10: Monopolies: Price discrimination: dependent on elasticity of demand Characteristics of a Pure Monopoly (think about economies of scale): Single seller: firm and industry are synonymous No close substitutes: product is unique, consumer who chooses not to buy  the monopolized product must do without it Price maker: monopolist controls the total quantity supplied, therefore has  considerable control over price. Can change price by reducing quantity, etc Blocked entry: no immediate competitors because of certain barriers that  keep competition out (whether they be economic, technological, legal, etc  barriers) Nonprice competition Legal barriers to entry: Patents: exclusive right of an inventor to use, or allow use of a specific  invention, 20 years global length Licenses: ex FCC only licenses so many radio and television, governments 
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/05/2008 for the course ECON 203 taught by Professor Al-sabea during the Fall '05 term at USC.

Page1 / 5

ECON 203 Final Review - 11:59:00 PM Chapter 10 Monopolies...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online