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12.12: Glossary- Monopoly

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    162492
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    allocative efficiency
    producing the optimal quantity of some output; the quantity where the marginal benefit to society of one more unit just equals the marginal cost
    barriers to entry
    the legal, technological, or market forces that may discourage or prevent potential competitors from entering a market
    copyright
    a form of legal protection to prevent copying, for commercial purposes, original works of authorship, including books and music
    deregulation
    removing government controls over setting prices and quantities in certain industries
    intellectual property
    the body of law including patents, trademarks, copyrights, and trade secret law that protect the right of inventors to produce and sell their inventions
    legal monopoly
    legal prohibitions against competition, such as regulated monopolies and intellectual property protection
    marginal profit
    profit of one more unit of output, computed as marginal revenue minus marginal cost
    monopoly
    a situation in which one firm produces all of the output in a market
    natural monopoly
    economic conditions in the industry, for example, economies of scale or control of a critical resource, that limit effective competition
    patent
    a government rule that gives the inventor the exclusive legal right to make, use, or sell the invention for a limited time
    predatory pricing
    when an existing firm uses sharp but temporary price cuts to discourage new competition
    trade secrets
    methods of production kept secret by the producing firm
    trademark
    an identifying symbol or name for a particular good and can only be used by the firm that registered that trademark
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