Economics - Unit 3 - Monopoly and Market Imperfections

Define monopoly power.

In theory, how much market share is required to have monopoly power?

In practice how much market share is required to have monopoly power?

Why is the demand for monopoly goods inelastic?

What are the four sources of monopoly power?

How can legal barriers help high cost firms operate efficiently?

How do economies of scale help a business as it grows in size?

What are the economies of scale?

What is the Technical economy of scale?

How is specialisation an economy of scale?

What is the Purchasing economy of scale?

What is the financial economy of scale?

How is risk-bearing an economy of scale?

How can marketing be used as an economy of scale?

How have some businesses used unfair competition to help maintain their dominant position in the market?

What are natural barriers used in maintaining monopoly power.

What are the advantages of monopoly power?

What are the disadvantages of monopoly power?

What sort of diseconomies of scale may a large firm experience?

How is monopoly an example of market failure?

When is economic efficiency maximised?

What does it mean when a business is productively and allocatively efficient?

What is factor immobility?

How are the factors of production immobile?

Give an example of market imperfection leading to market failure.

What is imperfect knowledge and why does it exist?

What is wealth and what are the 3 basic sources?

What are the 2 forms of wealth?

What can cause the rise of one's wealth?