ZuoTi.Pro
Question

A monopolist faces no internal rivalry and so is more likely to be able to set a high selling price


A monopolist faces no internal rivalry and so is more likely to be able to set a high selling price. What other of the five forces might limit a monopolist's ability to set a high selling price? Justify your answers with a one to three-sentence explanation

business   economics   
1 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Other than potential competition, elasticity of demand palys an important role in limiting monopoly power, when it is high. Welfare concept in a democracy with public opinion also put limits. Certain degree of consumer surplus must be there and monopoly can't charge prices above that. Legislation in case of public utilities services like natural gas and electricity, there is a limit on price. If excessive high price is charged, people go for even less satisfying substitutes, which also put limits on monopoly.

0 0
Add a comment
Know the answer?
Add Answer to:
A monopolist faces no internal rivalry and so is more likely to be able to set a high selling price
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • I need to put answer 1 and 2 together into one. and also verify if its...

    I need to put answer 1 and 2 together into one. and also verify if its right thank you ANSWER 1 Porter’s Five Forces Analysis Of Adidas For the constant maintenance of profit of the organization and to analyze the competition of the business we use Porter’s five forces. This business model will help us to identify the exact causes of threat by keen analyzation of various categories. And it also helps us to make strategic decisions for the productive...

  • demand curve (more sensitive to price)? Why? Media Analysis Question In today's economy, many sectors telecoms,...

    demand curve (more sensitive to price)? Why? Media Analysis Question In today's economy, many sectors telecoms, cable TV, digital branches from social media to internet search, health insurance pharmaceuticals, agro-business, and many more cannot be understood through the lens of competition. In these sectors, what competition exists is oligopolistic, not the "pure" competition depicted in textbooks. A few sectors can be defined as "price taking"; firms are so small that they have no effect on market price Agriculture is the...

  • 7-10 There is a new lottery game where twelve numbers are chosen from the set of numbers from 1 to 24, with no repeats. One of the ways to win is to match ZERO numbers, the other way to win is to...

    7-10 There is a new lottery game where twelve numbers are chosen from the set of numbers from 1 to 24, with no repeats. One of the ways to win is to match ZERO numbers, the other way to win is to match ALL the numbers. Order does not matter. 7. Calculate the probability of getting all the numbers correct. Show the setup of the numbers, in case calculations go silly and also to show that you didn't just Google...

  • Task This assessment aims to develop and gauge student understanding of the key topics covered so...

    Task This assessment aims to develop and gauge student understanding of the key topics covered so far by answering the following questions. Answering these questions will help you build some understanding for the next assessment item as well as for the entire subject. It is expected that answers to the assignment questions be succinct (i.e. precise and concise) with all sources of information fully referenced as per APA referencing style. You have to reference the text book and any additional...

  • Tell me wether each statement is true or false: 1.Factors that cause the rivalry among competing...

    Tell me wether each statement is true or false: 1.Factors that cause the rivalry among competing sellers to be weak include low buyer switching costs and rival sellers that are relatively equal is size and capability. 2.High labor productivity (especially if the production process has high labor content) is a good example of a manufacturing-related key success factor. 3.Whether the company’s sales are growing faster, slower, or about the same pace as the industry as a whole, thus resulting in...

  • the last fill in the blank (less/more) 5. Correcting for negative externalities - Regulation versus tradable...

    the last fill in the blank (less/more) 5. Correcting for negative externalities - Regulation versus tradable permits Suppose the government wants to reduce the total pollution emitted by three local firms. Currently, each firm is creating 4 units of pollution in the area, for a total of 12 pollution units. If the government wants to reduce total pollution in the area to 6 units, it can choose between the following two methods: Available Methods to Reduce Pollution 1. The government...

  • Media Analysis Question In today's economy, many sectors telecoms, cable TV, digital branches from social media...

    Media Analysis Question In today's economy, many sectors telecoms, cable TV, digital branches from social media to internet search, health insurance, pharmaceuticals, agro-business, and many more cannot be understood through the lens of competition. In these sectors, what competition exists is oligopolistic, not the "pure" competition depicted in textbooks. A few sectors can be defined as "price taking": firms are so small that they have no effect on market price. Agriculture is the clearest example, but government intervention in the...

  • Discussion questions 1. What is the link between internal marketing and service quality in the ai...

    Discussion questions 1. What is the link between internal marketing and service quality in the airline industry? 2. What internal marketing programmes could British Airways put into place to avoid further internal unrest? What potential is there to extend auch programmes to external partners? 3. What challenges may BA face in implementing an internal marketing programme to deliver value to its customers? (1981)ǐn the context ofbank marketing ths theme has bon pururd by other, nashri oriented towards the identification of...

  • 1) After considering the situation of market power for my software and how it changed after...

    1) After considering the situation of market power for my software and how it changed after the introduction of competitors, consider situations of natural disasters and how governments respond to shortages resulting from them. Read this article; what is the most likely way that anti-gouging laws potentially can increase social welfare? Select one: a. Penalties assessed on price gougers can be redistributed to victims or the area at large that was affected by the natural disaster. In that sense, the...

  • Dan Price, the founder of Gravity Payments, a small, privately owned company that provided high-service and...

    Dan Price, the founder of Gravity Payments, a small, privately owned company that provided high-service and low-cost credit card processing, surprised his 120-person staff when he announced that over the next three years he would raise the salary of all employees, even the lowest paid clerk, customer service representative, and salesperson, to a minimum of $70,000. The average annual salary at that time at Gravity was around $48,000, so the increase would nearly double some employees’ salaries. Price explained that...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT