Like this study set? Create a free account to save it.

Sign up for an account

Already have a Quizlet account? .

Create an account

Chapter 10 Econ

price setter

A firm that sets or picks price based on its output decision.

monopoly power

The ability to act as a price setter.

barriers to entry

Characteristics of a particular market that block the entry for new firm in a monopoly market.

natural monopoly

A firm that confronts economies of scale over the entire range of outputs demanded in its industry.

sunk cost

An expenditure that has already been made and that cannot be recovered.

network effects

Situations where products become more useful the larger the number of users of the product.

(monopoly) market

Large number of buyers, one seller. Entry is blocked.

demand and marginal revenue curves (monopoly)

The firm faces the market demand curve; marginal revenue is below market demand.

price (monopoly)

The monopoly firm determines price; it's a price setter. Price is greater than marginal cost.

profit maximization (monopoly)

Firms produce where marginal cost equals marginal revenue and charge the corresponding price on the demand curve.

Profit (monopoly)

Because entry is blocked, a monopoly firm can sustain an economic profit in the long run.

efficiency (monopoly)

the equilibrium solution is inefficient because price is greater than marginal cost.

Please allow access to your computer’s microphone to use Voice Recording.

Having trouble? Click here for help.

We can’t access your microphone!

Click the icon above to update your browser permissions and try again


Reload the page to try again!


Press Cmd-0 to reset your zoom

Press Ctrl-0 to reset your zoom

It looks like your browser might be zoomed in or out. Your browser needs to be zoomed to a normal size to record audio.

Please upgrade Flash or install Chrome
to use Voice Recording.

For more help, see our troubleshooting page.

Your microphone is muted

For help fixing this issue, see this FAQ.

Star this term

You can study starred terms together

Voice Recording