may be natural or created.
natural monopoly
An industry characterized by economies of scale sufficiently large that
only one firm can cover its costs while producing at its minimum efficient
scale.
cartel
An organization of producers who agree to act as a single seller in order
to maximize joint profits.
price discrimination
The sale by one firm of different units of a product at two or more
different prices for reasons not associated with differences in cost.
concentration ratio
The fraction of total market sales controlled by a specified number of the
industry’s largest firms.
differentiated product
A group of products similar enough to be called the same product but
dissimilar enough that they can be sold at different prices.
price setter
A firm that faces a downward-sloping demand curve for its product. It
chooses which price to set.