The Social Costs of Monopoly Power
2 years ago
Microeconomics
Rent seeking – Spending money in socially unproductive efforts to acquire, maintain, or exercise monopoly.
Natural monopoly – Firm that can produce the entire output of the market at a cost lower than what it would be if there were several firms.
Rate-of-return regulation – Maximum price allowed by a regulatory agency is based on the (expected) rate of return that a firm will earn.
Bijay Satyal
Dec 1, 2021