20 terms

Monopolies

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Terms in this set (...)

resource prices
(supply shift): A change in the cost of production
change in technology
(supply shift): A change that allows more of a product to be produced using the same resources
taxes and subsidies
(supply shift): A change in the cost of production because of government policy
price of related goods
(supply shift): If something similar to product goes way up or down in price it will change the price of the product
suppliers expectations
(supply shift): What the supplier of the product thinks will happen in the future
number of sellers
(supply shift): An increase/decrease in the number of sellers
shortage
situation in which quantity demanded is greater than quantity supplied
surplus
situation in which quantity supplied is greater than quantity demanded
equilibrium
quantity demanded is equal to quantity supplied
price takers
firms that go into competitive markets cannot make their own price. they are called _____________.
price makers
monopolies are allowed to make their own price when they go into the market. they are called ______________.
profit
derive a benefit from (in money)
tradeoff
alternatives that must be given up when chosen
barrier to entry
Any factor that makes it difficult for a new firm to enter a market
entrepreneur
risk taking individual in search of profits
monopoly
one company that is sole producer of one unique product
opportunity cost
cost of the next best alternative use of money
patent
a document granting an inventor sole rights to an invention
zero economic profits
money firm made from selling product is equal to the money they would have made had they invested the money in the bank
efficiency
best use of resources
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