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Basic Characteristics

100

Where Does Monopoly Come From (There are four, one for 100 points)

Geography/resources as barrier

Technology/common use (dominant standard)

Economies of scale → natural monopoly

Government barrier (patents/permissions)

200

Monopoly has lower average costs via what mechanism?

economies of scale

Profit Maximization

100

At what quantity does a perfectly competitive industry produce? 

MC = Price

200

At what quantity does a monopoly produce?

MR = MC

Revenue Model

100

What is marginal cost?

Cost to produce one extra unit. 

200

Total cost is the sum of which two costs? 

Fixed cost and varaible cost