ECONOMICS
COMPETITION AND MARKET STRUCTURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Economies of scale
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Market Power
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Government Monopoly
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Price discrimination
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Detailed explanation-1: -Monopoly is a firm where there is only a single seller who sells unique product, which has no close substitute, and has a full control over the firm. Hence, a market structure in which there is a single seller is called monopoly.
Detailed explanation-2: -In a monopoly, there is only one seller in the market. The market could be a geographical area, such as a city or a regional area, and does not necessarily have to be an entire country. The single seller is able to control prices. Most monopolies fall into one of two categories: natural and legal.
Detailed explanation-3: -Economic market structures can be grouped into four categories: perfect competition, monopolistic competition, oligopoly, and monopoly. The categories differ because of the following characteristics: The number of producers is many in perfect and monopolistic competition, few in oligopoly, and one in monopoly.
Detailed explanation-4: -#1 – Simple monopoly. #2 – Pure monopoly. #3 – Natural monopoly. #4 – Legal monopoly. #5 – Public or industrial monopoly. #1 – Maximizes profits. #2 – Sets prices. #3 – Poses high entry barriers. More items