ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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You could charge more for your product
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You would make more
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You would hire more employees
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You would charge less for your product
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Detailed explanation-1: -If there are no competitors, then if the product has demand, that is a great place to be. This situation is covered in this video: Basically, you experiment charging the highest price that results in enough demand to increase overall profit.
Detailed explanation-2: -In an economy without adequate competition, prices and corporate profits rise, while workers’ wages decrease. This means large corporations and their shareholders gain wealth, while consumers and workers pay the cost.
Detailed explanation-3: -Greater competitiveness creates more productivity and better quality of products and services. Companies can satisfy consumer preferences and, consequently, attain a better position in the market. The market grows steadily, and consumers benefit from lower prices and a more comprehensive range of goods and services.
Detailed explanation-4: -The definition of monopoly – pure monopoly – is a company that literally has no competition. No other sellers of the particular product or service exist.
Detailed explanation-5: -Competition-driven prices are often market-oriented and are set based on how others are pricing products and services in the marketplace. So, the seller makes a decision based on the prices set by its competitors. Prices between competitors may not necessarily be the same; one competitor may end up lowering its price.