In a __________ market, the threat of entry keeps prices low.
a.public
b.contestable
c.competitive
d.natural monopoly
"C"
In a contestable market the threat of entry of the new firms keep the prices low. natural monopoly and competitive market will not manage the price at all.
In a __________ market, the threat of entry keeps prices low. a.public b.contestable c.competitive d.natural monopoly
Question 3 Monopoly a) Discuss how monopoly markets discriminate prices by using the concept of market segmentation. b) The market demand curve for a monopoly firm is given as P = 200 – 20. Furthermore, the marginal cost is represented by the equation MC = 20 + 20. The firm's TC can be expressed as TC = 200 + Q2 + 100. Use this information to answer the questions and calculate the following: i) Profit maximizing quantity and price. ii)...
Give one real-life example of a monopoly (or near-monopoly) in any economy, and explain what market-entry barriers make it a monopoly.
a) Discuss how monopoly markets discriminate prices by using the concept of market segmentation
For a monopoly to persist, the market must be closed to entry. Identify and explain three means of doing so and provide an example for each.
Given the following inverse demand and cost function, answer the questions below: a) Suppose barriers to entry exist such that only one firm serves the market with no threat of entry. What will be the monopoly price, outcome, and profit? b) Suppose instead that perfect competition exists in this market. What will be the competitive price, market quantity Q, and competitive firm profit? c) Suppose two firms serve the market with no threat of entry. If the two firms compete...
A monopoly is a market in which there are high barriers to entry, which are restrictions that make it difficult for new firms to enter a market. There are two types of barriers to entry: natural barriers and government-created barriers. Sort the following into the appropriate type of entry barrier. Taxi companies have market power because it is difficult for new companies to obtain a license to operate. ALCOA’s production costs per unit of aluminum continued to fall as the...
Which of the following are common barriers to entry in a market that has a monopoly? Choose one or more: A. A monopolist could enjoy the benefits of a government-imposed barrier.B. A monopolist could charge a higher price than potential competitorsC. A monopolist could enjoy economies of scale. D. A monopolist could control a vital resource.
A market with a monopoly firm will have higher prices and less output than if the market were perfectly competitive. True False In monopolistically competitive markets, the firms sell identical products. True False For a monopolist, the marginal revenue (MR) curve is the same line as the demand (D) curve. True False If marginal revenue for the 5th unit of a good is negative, then total revenue must be falling. True False Collusion is most often found among firms in...
A closed monopoly is pushed by other firms that wish to enter the market by earning normal profits the development of substitute products and challenges to any legal barriers that limit competition. the threat of closing down the free market and other firms it its industry
Two (advertising-free) newspapers compete in prices for an infinite number of days. The monopoly profits (per day) in the newspaper market are πM and the discount rate (per day) is δ. If the newspapers compete in prices, they both earn zero profits in the static Nash equilibrium. Finally, if the firms set the same price, they split the market equally and earn the same profits. a. The newspapers would like to collude on the monopoly price. Write down the strategies...