ECON 203 Final Review - 11:59:00 PM Chapter 10 Monopolies Price discrimination dependent on elasticity of demand Characteristics of a Pure

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

This preview shows page 1 - 2 out of 5 pages.

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

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture