Microeconomics chapter 12: monopoly

Sellers that can set the price of a good

The ability to set the price

One seller of a good or service with no close substitutes

Circumstances that prevent potential competitors from entering market

Government.
Patent and copyright

Government granted permission to be sole producer and seller

Government granted right

When a single firm obtains market power through natural barriers

Essential for the production of a good or service

When a products value increases as more consumers use it ex.eBay, Facebook

Emerges because it enjoys economies of scale over a very large range of output

Action of individuals or groups who spend resources to influence public policy In hopes of redistributing income to themselves from other. The cost and organizational slack in a monopoly resulting from the lack of competitive pressure to push costs down to their lowest possible level

Charging different customers different prices for the same good or service when there are no different costs

Customer is charged max he is willing to pay ex.ebay, car buying

Consumers are charged different prices based on characteristics of the purchase ex. Cheap last min hotel room

Consumers are charged different prices based on the character of the customer or location ex.senior discount

Government policies that try to prevent anti-competitive pricing, low quantities, and dead weight loss from emerging and dominating market

Price=MC
PRICE=ATC

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