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Abuse o Monopoly Power (Monopolistic competition (Costs (High '…
Abuse o Monopoly Power
Market Structures
Olygopoly
Perfect competition
Monopolistic competition
Barriers to entry
Number of buyers and sellers
Economies of large scale production
Brand loyalty
Vertical integration
Exclusive contracts
Costs
High 'sunk' costs
Set up costs
Ownership of a scarce resource
Limit pricing
Government response
Legislation
Direct provision of merit and public goods
Taxation
Subsidies
Tradable permits
Extension of property rights
Advertisting
International cooperation among governments
Affects
Less choice
High prices
Restricted output
Less consumer surplus
Information on the consumers
Productive inefficiency
Allocative inefficiency
Less employment