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Definition
| competition that does not fit the definition of perfect competition either because it involves a smaller number of firms or only one firm, or products that aren't identical. |
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| Imperfect Competition Flavors |
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Definition
Monopoly
Oligopoly
Monopolistic Competition |
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Definition
| A firm that faces no competitors. |
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Definition
| Many firms sell similar but differentiated products. |
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Definition
| A smaller number of rims sell a similar product but face no other competition |
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Definition
| The legal, technological, or market forces that may discourage or prevent potential competitors from entering a market. |
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Definition
| Eliminating or scaling back government rules on prices that can be charged, quantities that can be produced, or conditions of entry in a certain industry |
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Definition
A government rule that gives the inventor the exclusive legal right to make, use, or sell the invention for a limited time
Last for 20 years |
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Definition
| A word, name, symbol or device that indicates the source of the goods and can only be used by a firm registered that trademark |
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Definition
A form of legal protection to prevent copying for commercial purposes original authorship, including books and music
Last for lifetime of author plus 70 yrs |
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Definition
| Methods of production kept secret by the producing firm |
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Term
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Definition
| The body of law including patents, trademarks, copyrights, and trade secret law that protect the right of inventors to produce and sell their inventions. |
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Definition
| when the quantity demanded in the market is less than the quantity at the bottom of the long-run average cost curve. |
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Definition
| When an existing firm uses sharp but temporary price cuts to discourage new competition |
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Term
Illustrating Monopoly Profits
STEP 1 |
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Definition
The monopolist determines Its Profit-Maximizing Level of Output
MR=MC |
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Illustrating Monopoly Profits
STEP 2 |
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Definition
| The Monopolist Decides What Price to Charge |
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Term
Illustrating Monopoly Profits
STEP 3 |
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Definition
Calculate Total Revenue, Total Cost, and Profit
Pg 11<<--Important |
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