ECONOMICS
COMPETITION AND MARKET STRUCTURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Monopoly
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Oligopoly
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Monopolistic Competition
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Perfect Competition
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Detailed explanation-1: -In a monopolistic market, the monopoly, or the controlling company, has full control of the market, so it sets the price and supply of a good or service.
Detailed explanation-2: -4] Monopoly In a monopoly type of market structure, there is only one seller, so a single firm will control the entire market. It can set any price it wishes since it has all the market power.
Detailed explanation-3: -Pure Monopoly This firm is the sole producer of a product, and there are no close substitutes. Because there are no alternatives, the firm has the highest level of market power. Hence, monopolists often reduce output, increase prices and earn more profit. Entry or exit is blocked in a pure monopoly.
Detailed explanation-4: -Technological Monopoly-A monopoly that is based on ownership or control of a manufacturing method, process, or other scientific advance. Government monopoly-a monopoly the government owns and operates.