Question

QUESTION8 Samantha is the only producer of a very unique type of jewellery. There are no close substitutes to the jewellery that she offers Select the item from the list provided to make the following statements true 1. Supply 2. Government regulators 3. Economic profits 4. Marginal revenue 5. Demand 6. Minimised 7. Deadweight loss 8. Differentiated 9. Market power 10. Opportunity costs 11. Maximised 12. Marginal cost YInefficiency resulting from a monopoly's operations, that brings an overall reduction in consumer and producer surplus compared to an otherwise competitive market, is referred to as Sam's profit is maximised at the quantity where the equals marginal cost Monopolistic competition involves product differentiation, thereby ensuring producers have some competitive market compared to none in a perfectly

Answer 1

The correct choice is option 7. deadweight loss

Explanation : - The reduction in economic surplus resulting from a market not being in competitive equilibrium is called the deadweight loss.

_________________________________________________________________________

The correct answer is option 4 . Marginal revenue

Explanation:- The monopolist maximizes profit by equating marginal revenue with marginal cost.

_________________________________________________________________________________

The correct answer is option 9 . Market power

Explanation:- Monopolistic competition is a form of imperfect competition where many competing producers sell products that are differentiated from one another thus allowing the producers to alter the market price of a good or service. This ability to alter market price give the producers a slight market power in a monopolistic competitive market.

_____________________________________________________