US13L1 - US13L1 1 A monopoly occurs when_. only natural...

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US13L1 1 A monopoly occurs when_________________. only natural barriers to entry exist close substitutes exist only franchises exist a barrier to entry into the industry exists 2 When natural or legal forces work to protect a firm from competition, the market is said to have __________________. non-competitive entry non-competitive supply barriers to entry restricted competition 3 The granting of a patent or a copyright ________________. creates a legal monopoly creates a natural monopoly reduces prices stimulates competition in the arts 4 The existence of economies of scale creates ________________. a market in which many firms make identical products a legal monopoly a natural monopoly a government monopoly
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5 When Dominant Pizza is willing to sell a pizza to a student who lives on-campus at a lower price than it is willing to sell the identical pizza to a student who lives a block away from the campus, the pizza firm is ______________. incurring a loss on on-campus sales unfair practicing price discrimination eliminating all competition 6 A monopoly that sells every unit of its output at the same price is a _______________________. single-price monopoly legal monopoly unit-price monopoly natural monopoly 7 Producer surplus is equal to _________________. the opportunity cost of producing the good minus the consumer's value of the good the opportunity cost of producing the good minus the marginal cost the producer's revenue minus the value of the good the producer's revenue minus the opportunity cost of production 8 Deadweight loss measures the inefficiency of the market as the loss of ________________. consumer surplus only consumer surplus minus producer surplus consumer surplus and producer surplus producer surplus only 9
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The attempt to capture consumer surplus, producer surplus, or economic profit is called __________________. rent seeking a natural monopoly price discrimination gouging 10 Consumer surplus is the ____________________________. value the consumer places on a good minus its price opportunity cost of a good minus its value price of a good minus its opportunity cost price of a good minus the value the consumer places on it US13L2 1 A copyright creates a monopoly by restricting _______________________. the number of creators and inventors
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US13L1 - US13L1 1 A monopoly occurs when_. only natural...

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