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ECON201B Chapter 8
Terms in this set (14)
Which of the following is most unlikely to present a barrier to entry into a market?
Government ______________ regulations specify that inventors will maintain exclusive legal rights to their respective inventions for ______________.
patent; a limited time
Intellectual property law is a body of law that includes
copyright legislation, as well as all of the above
Which of the following is most likely to be a monopoly?
local electricity distributor
Which one of the following is the most accurate description of a monopolist?
a sole producer of a product for which good substitutes are lacking in a market with high barriers to entry
A firm that holds a monopoly position in the market place is
a price maker
A monopolist is able to maximize its profits by
producing output where MR = MC and charging a price along the demand curve.
The slope of the demand curve for a monopoly firm is
The marginal revenue curve for a monopolist ______________ the market demand curve.
always lies beneath
For a pure monopoly to exist,
there is a single seller in a particular industry
After maximizing profits, what do the firm's costs equal?
the area of rectangle ABGH
After maximizing profits, what does the firm's revenue equal?
the area of rectangle ADEH
After maximizing profits, what do the firm's profit's equal?
the area of rectangle BDEG
Following the assumption that firms maximize profits, how will the price and output policy of an unregulated monopolist compare with ideal market efficiency?
output will be too small and its price too high.
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