9 terms

Economics: Chapter 10

pure monopoly
a single firm is the sole producer of a product for which there are no close substitutes
barriers to entry
factors that prohibit firms from entering an industry
simultaneous consumption
a producer's ability to satisfy a large number of consumers at one time
network effects
increases in the value of a product to each user, including existing users, as the total number of users rises
the production of output, whatever its level, at a higher average (and total) cost than is necessary for producing that level of output
rent-seeking behavior
any activity designed to transfer income or wealth to a particular firm or resource supplier at someone else's, or even society's, expense
price discrimination
the practice of selling a specific product at more than one price when the price differences are not justified by cost differences
socially optimal price
the price that achieves allocative efficiency
fair-return price
the price of a product that enables its producer to obtain a normal profit and that is equal to the average total cost of producing it