39. A Monopoly differs from a Perfectly Competitive market in that: A) A Monopolist always earns...
39. A Monopoly differs from a Perfectly Competitive market in that:
A) A Monopolist always earns a normal profit in the long run.
B) A Monopoly market is easy to enter.
C) No close substitutes exist for the Monopolist’s product.
D) There is a lot of market power in a Perfectly Competitive market and none in a Monopoly market.
Homework Answers
In Monopoly market there is a barrier to entry but there is no barrier to entry in the perfect competitive market .
Monopoly have has more market power because of the only single and price maker but perfect competitive market is a price taker market .
They have not market power .
There is no close substitute in the monopoly product
The reason can be resource controlling ,Intellectual Property Rights etc.
so the only correct here is option C
Add Answer to:
39. A Monopoly differs from a Perfectly Competitive market in
that:
A) A Monopolist always earns...
Is this correct :) Compare monopoly and perfectly competitive firm on the following points. Perfectly Competitive...
Is this correct :)
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QUESTION 21 If a monopoly situation arises from a perfectly competitive market, the portion of producer...
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Is this correct :)
Compare monopoly and perfectly competitive firm on the following points. Perfectly Competitive Firms Monopoly 8. Prof. Camara/Assignment/P-Micro/Winter_2020 Single Many Number of Sellers Yes, Comparatively Easy Yes, Difficult Free entry/exit Normal Zero Long-run economic profits Identical Differentiated The products the firms sell None, price taker Yes Firms has market power? Downward-sloping Horizontal Total Surplus is maximized? Zpro Low Barriers Deadweight-Loss positive or zero?
QUESTION 21 If a monopoly situation arises from a perfectly competitive market, the portion of producer surplus that increases in a monopoly is transferred from the perfectly competitive market's deadweight loss o fixed cost. consumer surplus. long-run positive economic profit. QUESTION 22 If a monopolist lowers its price • the quantity demanded remains the same. the quantity demanded decreases the quantity demanded becomes zero. the quantity demanded increases. QUESTION 23 I a monopolist produces to a point at which marginal...
Which of these statements regarding the differences between monopoly and a competitive market are true? Choose one or more: A. There are more firms in a competitive market than in a monopoly. B. A monopolist can earn profits in the long run, but a firm in a perfectly competitive market cannot. C. A monopoly is a price maker, while a competitive firm is a price taker. D. A monopolist will produce less than the output produced in a perfectly competitive market.
1. What is a monopoly? Name 2 differences between a monopoly and a perfectly competitive market. 2. What is the profit maximizing condition for a price-setting monopoly? 3. Show that MR follows the notion "same intercept, twice the slope" of demand. 4. Is a monopoly the most socially optimal market? How does a monopoly differ from a perfectly competitive market? Explain and show in a graph. What is the difference in welfare? 5. At what point would a monopoly decide...
In the long run, a firm in a perfectly competitive market earns zero economic profit, so the opportunity in the short run to enjoy positive economic profits will cause existing firms to increase output and new firms to enter the market.
NAME PRINT LAST NAME, FIRST NAME SECTIONE MONOPOLY is a pure monopoly when: İt is the only seller of a unique product and barriers to entry pneventother selen from entering the market in the long run it is the only seller of a product that has the market in the long run is unrestricted b. very few close substitutes and entry into C. there are only a few other very large firms selling similar products. d. it can sell all...
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are making an economic Today, firms in a perfectly competitive market run, firms will profit. In the long firns in a perfectly competitive market are making the market until all firms in the market onomic e) exit, producing at the minimum point on their long-run average cost d) a) exit; covering only their total fixed costs b) enter, making zero economic profit enter, making zero normal profit an economic profit when new firms enter 46. The firms in a perfectly...
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