ECONOMICS
COMPETITION AND MARKET STRUCTURES
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Question
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One
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15
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30
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Detailed explanation-1: -In a monopolyMarket in which there is only one seller supplying products at regulated prices., however, there’s only one seller in the market.
Detailed explanation-2: -Under a monopoly there is only one firm that offers a product or service, experiences no competition, and sets the price, thus making it a price maker rather than a price taker. Barriers to entry are high in a monopolistic market.
Detailed explanation-3: -The characteristics of monopoly include: (1) one firm, (2) one product, and (3) no entry (Table 5.1).
Detailed explanation-4: -There is only one firm in the monopoly market. When a monopoly firm exercises market power, . Q. In a monopoly market what is the degree of control over price by the firm?
Detailed explanation-5: -Monopolies have the ability to limit output, thus charging a higher price than would be possible in competitive markets. Unlike a competitive company, a monopoly can decrease production in order to charge a higher price.