GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A monopoly producer has
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Control over production but not price
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Control over production as well as price
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Control neither on production nor on price
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Control over production, price and consumers
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Explanation:
Detailed explanation-1: -A monopoly is defined as a single seller or producer that excludes competition from providing the same product. A monopoly can dictate price changes and creates barriers for competitors to enter the marketplace.
Detailed explanation-2: -A firm making profits in the short run will nonetheless only break even in the long run because demand will decrease and average total cost will increase. This means in the long run, a monopolistically-competitive company will make zero economic profit.
Detailed explanation-3: -The three main features of a monopoly are: Single seller and several buyers. No close substitute of the product. Strong barriers to the entry of new firms.
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