ECONOMICS
COMPETITION AND MARKET STRUCTURES
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
1
|
|
|
2-5
|
|
|
Many
|
|
|
None of the above
|
Detailed explanation-1: -There is only one firm in the monopoly market.
Detailed explanation-2: -The characteristics of monopoly include: (1) one firm, (2) one product, and (3) no entry (Table 5.1).
Detailed explanation-3: -Over 300 different versions of Monopoly have been created, including “Star Wars, ” Pokemon, and “Game of Thrones."
Detailed explanation-4: -The monopoly price and quantity are found where marginal revenue equals marginal cost (MR = MC): PM and QM. The graph indicates that the monopoly reduces output from the competitive level in order to increase the price (PM > Pc and QM < Qc).
Detailed explanation-5: -Natural Monopoly. Only one company providing a public good or service. Technological Monopoly. When a single firm has exclusive rights over the technology used to manufacture it. Geographic Monopoly. Government Monopoly. Least Threat: Four Types of Monopolies.