9.6 Key Terms
Key Terms
Is an economic concept regarding efficiency at the social or societal level. It refers to producing the optimal quantity of some output, the quantity where the marginal benefit to society of one more unit just equals the marginal cost. 9.4
These are the legal, technological, or market forces that discourage or prevent potential competitors from entering a market. Barriers to entry can range from the simple and easily surmountable, such as the cost of renting retail space, to the extremely restrictive. For example, there are a finite number of radio frequencies available for broadcasting. 9.1
An illegal practice in which bidders (buyers) conspire to set prices in their own interest. 9.5
According to the Canadian Law, “is a form of protection for original works of authorship including literary, dramatic, musical, architectural, cartographic, choreographic, pantomimic, pictorial, graphic, sculptural, and audiovisual creations.” 9.1
We call this combination of patents, trademarks, and copyrights intellectual property because it implies ownership over an idea, concept, or image, not a physical piece of property like a house or a car. 9.1
Where laws prohibit (or severely limit) competition.9.1
One firm produces all of the output in a market. Since a monopoly faces no significant competition, it can charge any price it wishes, subject to the demand curve. 9.0
Where the barriers to entry are something other than legal prohibition 9.1
Gives the inventor the exclusive legal right to make, use, or sell the invention for a limited time.9.1
A practice that is aimed at driving out competition by artificially reducing the price of one product sold by a supplier. 9.5
This is distinct from other monopolies in that the firm must charge the same price to all consumers. In this case, the aggregate demand is the firm’s demand! 9.2
An identifying symbol or name for a particular good or service, like Chiquita bananas, Chevrolet cars, Rogers Cable.9.1
