No firm is completely sheltered from rivals. The Inefficiency of Monopoly.
A monopoly is a firm that sells all or nearly all of the goods and services in a given market.
Which of the following could explain why a firm is a monopoly?. A monopoly is a business that is the only provider of a good or service giving it a tremendous competitive advantage over any other company that tries to provide a similar product or service. A firm may be the only firm in its industry for a variety of reasons. A firm is a pure monopoly when it is the only firm in its industry.
Conditions on the market can create different market structures. A monopoly produces goods that are unique and have no close substitutes. In a famous 1947 case the federal government accused the DuPont company of having a monopoly in the cellophane market pointing out that DuPont produced 75 of the cellophane in the United States.
In a monopoly the price is set above marginal cost and the firm earns a positive economic profit. CThe firm is not protected by any barrier to entry. Firms have full control over the market that is the monopoly firm has 100 percent market share.
Select one or more answers from the choices shown. Monopoly refers to the market structure with the features of a single seller and more buyers. If there is a small group of companies in a market who sell the same products the structure is called an oligopoly.
Which of the following could explain why a firm is a monopoly. AThe firm can supply the entire market at a lower cost than could two or more firms. A monopoly is a firm that is the sole producer of a good or service.
Most people criticize monopolies because they charge too high a price but what economists object to is that monopolies do not supply enough output to be allocatively efficient. Technically the term monopoly is used in reference to the market itself although it is today commonly used to refer to the single seller in a market as well. BIts average total cost curve slopes upward as it intersects the demand curve.
Price is fixed by the monopoly producer. Which of the following could explain why a firm is a monopoly. Monopolies produce an equilibrium at which the price of a good is higher and the quantity lower than is economically efficient.
A natural monopoly arises when economies of scale persist over a large enough range of output that if one firm supplies the entire market no other firm can enter without facing a cost disadvantage. If that is so then pure monopoly does not exist A monopoly is more likely to persist if the cross price elasticity of demand is positive and less than one. They control the entire supply chain from production to retail.
A monopoly is characterized by the absence of competition which can lead to high costs for consumers inferior products and services and corrupt behavior. Some companies become monopolies through vertical integration. In an oligopoly two or more companies control the market none of which.
Asked Feb 10 in Other by manish56 -30112 points Which of the. A monopoly is a market with only one seller and no close substitutes for the product or service that the seller is providing. But what defines the market.
Which of the following could explain why a firm is a monopoly. You may select more than one answer. A firm can have some monopoly power if its product is differentiated from other firms products and if some consumers prefer its product to other firms products.
If a monopoly can experience economies of scale the monopolist can reduce the price below a pure competitor and improve resource allocation. A monopoly occurs when a single company that produces a product or service controls the market with no close substitute. All firms compete for consumer dollars.
Assume a monopolistic publisher agrees to pay an author 15 percent of the total revenue from text sales. A firm might also be located more conveniently for some consumers. A company that dominates a business.
Because the single seller is the only source of the particular product or service they have the ability. This means that the monopoly faces no. Which of the following could explain why a firm is a monopoly.
To understand why a monopoly is inefficient it is helpful to compare it with the benchmark model of perfect competition. The monopoly might experience economies of scale not available to the competitive firm. 11 12Which of the following is true of a natural monopoly.
Patents Economics of scale and Government licenses. These differences allow the firm to charge a price above its marginal cost and different from its rivals. Perfect competition produces an equilibrium in which the price and quantity of a good is economically efficient.
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