ECONOMICS
COMPETITION AND MARKET STRUCTURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -There are typically high barriers to entry, which are obstacles that prevent a company from entering into a market. Potential entrants to the market are at a disadvantage because the monopoly has the first-mover advantage and can lower prices to undercut a potential newcomer and prevent them from gaining market share.
Detailed explanation-2: -Monopoly is a form of market in which there is a single firm selling a unique product.
Detailed explanation-3: -Answer and Explanation: A monopoly is a sole industry in the entire market. The commodity sold by the monopoly has no substitutes in the entire market.
Detailed explanation-4: -The correct answer is Monopsony. A monopsony occurs when a firm has market power in employing factors of production. It means there are one buyer and many sellers. When the market is under a monopsony, the market is dominated by a single buyer while, in the case of monopoly, a single seller is seen in the market.