Relative to perfectly competitive industries, monopolies will restrict output, allowing them to charge a higher price and make a profit. This results in a net loss of benefits to society.

Volatility risk is the risk that the price of a bond with an embedded option will change when expected yield volatility changes.

When a good is broadly defined, such as "soft drinks," the elasticity of demand is small because all of the good substitutes have been included under the definition of the good. The fewer the substitutes and the smaller the portion of income spent on the good, the less elastic demand is likely to be.