Monopolies

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A monopoly is when:

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One seller/business dominates an industry.

Front

Why are geographic monopolies common in small towns?

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Small towns usually have just one seller of a given item.

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What can happen when a pharmaceutical company has a technological monopoly on certain medications? Lifesaving medicines may be too expensive to afford. Owning the patent on medicines means other companies may not be able to improve upon them. Generic versions of medicines cannot be produced.

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All of the above

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In an oligopoly...

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A few sellers dominate the market

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Collusion is...

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Illegal, when oligopolists cooperate for their own benefit, and when oligopolists fix prices and harm the consumer and the competition.

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In perfect competition, prices are controlled by

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supply and demand

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The only price at which quantity demanded equals quantity supplied is called

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equilibrium price

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A video store merging with another video store is an example of

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horizontal merger

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An oil company merging with a refinery company is an example of a(n)

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vertical merger

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Which of the following is a source of monopoly power? Examples include, brand name power, and predatory pricing: Scarcity, Elasticity of demand, Barriers to entry, Low Profits.

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Barriers to entry