Definitions
Net loss to society when a firm with market power restricts output and increases the price
What is Deadweight loss of monopoly
If a patent was created for a new technology in 1993, what year will it be valid until?
2013
The ability to supply a product at a lower average cost per unit than two or more firms, each producing less is what?
The source of monopoly power for a firm with economies of scale
What arises when a monopoly produces less output than a perfectly competitive firm and charges a higher price?
Allocative inefficiency
Who claimed, patents added fuel to the fire of genius?
Abraham Lincoln
When a single firm has a cost advantage over smaller potential entrants
A natural monopoly
A monopolist's profit-maximizing level of output occurs at the point where?
Marginal revenue equals marginal cost.
Patents give firms what?
Market Power
The perfect competitor is a what?
Price taker
What is special about the supply curve of a monopoly?
It cannot be constructed
Government granted monopolies
Bribing politicians is an illegal form of what?
Rent seeking
If average variable cost curve is above the average revenue curve at all output rates, what will a monopoly do in the short run?
Shut down in the short term
“Generic versions” enter the market when what?
A patent expires
A entrepreneur makes custom sweaters and charges based on materials needed for each project, this is considered what?
Perfect price descrimination