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Microeconomics CH 10
Vocab
9
Economics
Undergraduate 1
02/10/2009

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Term
Pure Monopoly
Definition
A market structure in which one firm sells a unique product, into which entry is blocked, in which the single firm has considerable control over product price, and in which nonprice competiiton may or may not be found.
Term
Barriers to Entry
Definition
Anything that artificially prevents the entry of firms into an industry.
Term
Simultaneous Consumption
Definition
The same-time derivation of utility from some product by a large number of consumers.
Term
Network Effects
Definition
Increases in the value of a product to each user, including existing users, as the total number of users rises.
Term
X-Inefficiency
Definition
The production of output, whatever it level, at a higher average (and total) cost than is necessary for producing that level of output.
Term
Rent-Seeking Behavior
Definition
The actions by persons, firms, or unions to gain special benefits from government at the taxpayers' or someone else's expense.
Term
Price Discrimination
Definition
The selling of a product to different buyers at different prices when the price differences are not justified by differences in cost.
Term
Socially Optimal Price
Definition
The price of a product that results in the most efficient allocation of an economy's resources and that is equal to the marginal cost of the product.
Term
Fair-Return Price
Definition
The price of a product that enables its producer to obtain a normal profit and that is equal to the average total cost of producing it.
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