Econ Chapter 15

  1. When a firms average total cost curve continually declines the firm is a
    natural monopoly
  2. fundamental cause of monopolies is
    Barriers to entry: legal (ie patent, copyright, trademark), technical (ie infrastructure cost), financial, reputation
  3. For a profit maximizing mopolist
    Price is GREATER than marginal revenue (=marginal cost)
  4. total revenue
    price x quantity sold
  5. Total Cost
    Average Total Cost x Quantity Sold
  6. Total Profit
    (Price - Total Average Cost) x Quantity Sold
  7. Deadweight Loss
    triangle between effecient quantity and monopoly quantity
  8. One problem with regulating a monopolist on the basis of cost is that
    it does not provide an incentive for a monopolist to reduce its cost
  9. Antitrust laws allow the government to
    all the above
  10. Price Descrimination
    when producer can sell same good at different prices to different customers
Card Set
Econ Chapter 15
Economy final Shah