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10.9: Key Terms

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    108702

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    Monopolist: is the sole supplier of an industry's output, and therefore the industry and the firm are one and the same.

    Natural monopoly: one where the ATC of producing any output declines with the scale of operation.

    Marginal revenue is the change in total revenue due to selling one more unit of the good.

    Average revenue is the price per unit sold.

    Allocative inefficiency arises when resources are not appropriately allocated and result in deadweight losses.

    Price discrimination involves charging different prices to different consumers in order to increase profit.

    A cartel is a group of suppliers that colludes to operate like a monopolist.

    Rent seeking is an activity that uses productive resources to redistribute rather than create output and value.

    Invention is the discovery of a new product or process through research.

    Product innovation refers to new or better products or services.

    Process innovation refers to new or better production or supply.

    Patent laws grant inventors a legal monopoly on use for a fixed period of time.

    This page titled 10.9: Key Terms is shared under a CC BY-NC-SA 4.0 license and was authored, remixed, and/or curated by Douglas Curtis and Ian Irvine (Lyryx) via source content that was edited to the style and standards of the LibreTexts platform; a detailed edit history is available upon request.