Monopolies (Grade 12 NSC Matric Economics): Flashcards
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Practise the cards
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Define a monopoly
Define a monopoly
Market with one seller & no close substitutes
Monopolists are price ___?
Monopolists are price ___?
Makers (can influence market prices)
What prevents entry in monopolies?
What prevents entry in monopolies?
Barriers: patents, regulations, high costs, resources
Natural monopoly cause?
Natural monopoly cause?
High development costs prevent entry (e.g., Eskom)
Artificial monopoly created by?
Artificial monopoly created by?
Legal means like patents
Monopolist demand curve equation?
Monopolist demand curve equation?
(downward sloping)
Where is MR curve vs demand curve?
Where is MR curve vs demand curve?
Below the demand curve
Why is MR < price for monopolists?
Why is MR < price for monopolists?
Must lower price for all customers to sell more units
Can monopolies profit long-run?
Can monopolies profit long-run?
Yes, barriers prevent new competitors
Monopoly substitutes availability?
Monopoly substitutes availability?
No close substitutes available