How might the government affect whether a firm is a monopoly?
How might the government affect whether a firm is a monopoly?
Governments often have the potential to influence whether firms are monopolies . One firm can supply 18 units of output for $11 less per unit in average total cost than two firms. To have a monopoly, barriers to entering the market must be so high that no other firms can enter.
What criteria would you use to determine if the restaurant is a monopoly?
What criteria would you use to determine if the restaurant is a monopoly? The ability to ignore the actions of other firms, the persistence of economic profits, and the availability of close substitutes.
What are the four most important ways a firm becomes a monopoly?
What are the four most important ways a firm becomes a monopoly? The four main reasons a firm becomes a monopoly are: the government blocks entry, control of a key resource, network externalities, and economies of scale.
Why might a monopoly arise one firm will be present when?
Question: Why Might A Monopoly Arise? One Firm Will Be Present When O A. There Exists No Possibility For Network Externalities With Other Firms. It Can Supply The Entire Market At Lower Marginal Cost Than Can Two Or More Firms.
Can a monopolist charge any price that it wants and still earn a profit?
For a monopoly, price need not equal marginal cost. However, monopolies cannot charge any price they want. Profits of monopolies are not unlimited, though they can be higher than profits for competitive firms.
Which of the following is a characteristic of monopoly?
A monopoly market is characterized by the profit maximizer, price maker, high barriers to entry, single seller, and price discrimination. Monopoly characteristics include profit maximizer, price maker, high barriers to entry, single seller, and price discrimination.
Which of the following is a source of monopoly power?
Sources of Monopoly Power. Important determinants/sources of monopoly power include elasticity of demand of the product, existence of economies of scale, control of a key resource, existence of legal barriers, etc.
Which of the following is the best example of price discrimination?
An example of price discrimination would be the cost of movie tickets. Prices at one theater are different for children, adults, and seniors. The prices of each ticket can also vary based on the day and chosen show time.
Which of the following is a characteristic of monopoly quizlet?
Definition of Monopoly: A market structure in which there is only one supplier of a product. What are the characteristics of a monopoly? May be small or large, only one supplier of the product, and sells a product where there are no close substitutes.
What are three characteristics of a monopoly?
The four key characteristics of monopoly are: (1) a single firm selling all output in a market, (2) a unique product, (3) restrictions on entry into and exit out of the industry, and more often than not (4) specialized information about production techniques unavailable to other potential producers.
Which of the following is an example of an Oligopolist?
Automobile manufacturing another example of an oligopoly, with the leading auto manufacturers in the United States being Ford (F), GMC, and Fiat Chrysler. While there are smaller cell phone service providers, the providers that tend to dominate the industry are Verizon (VZ), Sprint (S), AT&T (T), and T-Mobile (TMUS).
What is the definition of monopoly in economics quizlet?
Monopoly. A market structure in which only one seller sells a product for which there are no close substitutes. Cartel. A formal organizations of sellers or producers that agree to act together to set prices and limit output. Price maker.
What is the goal of a monopoly?
A pure monopoly has the same economic goal of perfectly competitive companies – to maximize profit. If we assume increasing marginal costs and exogenous input prices, the optimal decision for all firms is to equate the marginal cost and marginal revenue of production.
What is the economic definition of a monopoly?
A monopoly refers to when a company and its product offerings dominate a sector or industry. The term monopoly is often used to describe an entity that has total or near-total control of a market.
What is a natural monopoly in economics?
A natural monopoly is a type of monopoly that exists due to the high start-up costs or powerful economies of scale of conducting a business in a specific industry. A company with a natural monopoly might be the only provider or a product or service in an industry or geographic location.