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...UT IS PRODUCED. Ex: computer industry 5) long run- all quantities of resources can be changed. Exit occurs when firms are not covering all costs. 6) normal profit in the long run- zero economic profit, when a normal profit is being earned, there is no entry or exit, it’d long run equilibrium. Ch.11 1) Monopoly- a market structure in which there is a single supplier of a product, one seller and one supplier, controls prices. Monopoly firm (monopolist) may be large or small, it must be the only supplier of the product. Ex: Rockefeller, controlled 90% of kerosene and oil in US. 2) Creation of monopolies: economies of scale-company gets larger and controls everything like Microsoft, actions by firms that creates barrier to entry, government that created barriers. 3) Natural monopoly- a monopoly that arises from economies of scale. 4) Local monopoly- a monopoly that exists in a limited geographic area 5) Regulated monopoly- a monopoly firm whose behavior is monitored and prescribed by a government entity 6) Monopoly myths: 1) a monopolist can ch...