Homework Answers
Monopoly market tends to restrict the output level and charge higher price. Oligopoly market can turn up to monopoly market if firms form collusion. Such collusion does not make consumer well off. But Monopoly market can not charge any price it wants, following factors restricts the pricing power of monopoly firm:
- Elasticity of demand, if elasticity of demand is relatively higher, firm can not charge higher price. If firm goes with higher price, there will be significant fall in demand. Thus, demand being elastic restricts the monopoly pricing power of firm.
- Pricing decision of monopoly market hinges upon the cost conditions of market as well.
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can you please help me with these problems . microeconomics 0/1.21 pts ed Question 80 The practice of setting prices deliberately below pricing. costs in an eff...
can you please help me with these problems .
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can you please help me with these problems .
microeconomics
0/1.21 pts ed Question 80 The practice of setting prices deliberately below pricing. costs in an effort to drive a competitor out of the market is known as predatory average variable O average fixed explicit average total marginal 0/1.21 pts wered Question 78 0/1.21 An example of a tying arrangement is a restaurant offering both Pepsi and Coca-Cola products. a car manufacturer installing expensive onboard GPS/navigation systems in all the...
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