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Monopoly
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A firm that is the sole seller of a product without close substitutes
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Natural Monopoly
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A monopoly that arises because a single firm can supply a good or service to an entire market at a smaller cost than could two or more firms
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Average Revenue
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The amount of revenue the firm receives per unit sold
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Marginal Revenue
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The amount of revenue that the firm receives for each additional unit of output
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Price Discrimination
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The business practice of selling the same good at different prices to different customers
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Arbitrage
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The process of buying a good in one market at a low price and selling it in another market a higher price to profit from the price difference
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Perfect Price Discrimination
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A situation in which the monopolist knows exactly the willingness to pay of each customer and based off of that can charge a price
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Synergies
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The benefits of greater efficiency as a result of mergers
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