Question

QUESTION 17 All these are characteristics of a monopoly except a Controls a large share of the market b. There is one seller of the product c. Controls a small share of the market d Has few substitutes QUESTION 18 Suppose the demand for pens increases and the supply for pens decreases. What effect will it have on the equilibrium price for pens? a It will fall b. It will rise c. Uncertain od None QUESTION 19 Porter's five forces portray a. A zero-sum game A game where your profitability comes at the expense of someone else's • The ability of market participants to create a larger total pie dOnly A&B

pls answer all

Answer 1

17) Answer: C

In a monopoly there will be single seller, no close substitute and control large share of Market. In a monopoly substitute are also not considered as substitute.

18) Answer: B

When the demand increase and the supply decrease than the equillibrium price will increase. It will happen in vice versa if demand decrease ad supply increase.

20) Answer: A

Change in price = 250-200 = 50

Change in quantity = 6000-8000 = -2000

Average price = (250+200)/2 = 225

Average quantity = (6000+8000)/2 = 7000

% Change in quantity demanded = (-2000/7000)*100 = -28.57

% Change in price = (50/225)*100 = 22.22

Price elasticity of demand = -28.57/22.22 = -1.29

21) Answer: C

A competitive firm earn positive or negative profit in short run only as in long run the profits will be zero