Fall 2024 - 4.2 Flashcard - Per 5

Front

A single seller in a market

Back

Monopoly

Front

Allows large firms to buy in bulk at a lower price

Back

Economies of scale

Front

Gives a company the right to sell its invention without competition

Back

Patent

Front

Ability to control prices and the output of the market

Back

Market Power

Front

Charging different prices for different consumer groups

Back

Price discrimination

Front

Why is a discounted airline ticket a form of price discrimination?

Back

Travelers in the same class pay different rates based on their demand

Front

Why does the government grant patents?

Back

To protect and encourage inventions

Front

Which of these businesses has the advantage of economies of scale? Small locally owned restaurant, Neighborhood auto repair shop, Automobile assembly plant

Back

Automobile assembly plant