Explaining how they can engender monopoly situation
Course:- Business Economics
Reference No.:- EM13891962

Assignment Help
Assignment Help >> Business Economics

In a pure monopoly, the monopolistic firm is the only one selling the product, therefore there are no constraints on what the firm can charge or on the profit it can make. Do you agree? Why?

Discuss various barriers to entry into an industry, explaining how they can engender a monopoly situation. Are any of these socially desirable? Why?

Assuming that the same cost curves apply to both purely competitive and monopolistic industries, compare their relative performance in terms of price, output, and profit. Use diagrams. Since industries of both kinds produce at a level at which marginal cost equals marginal revenue, to what do you attribute the differences between their performances?

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Business Economics) Materials
Of course it is a generalization but we are trying to examine its relevance to management theory and practice. The best practice is to formulate your reply in a Word documen
"Most textiles worn by American consumers are produced in Asian and South American countries where the opportunity costs of production are lower." This observation refers to t
The law of diminishing marginal utility states that as an individual increases consumption of a given product within a set period of time, the utility gained from consumption
Suppose that two identical firms produce widgets and that they are the only firms in the market. Their costs are given by C1=10Q1 and C2=10Q2, where Q1 is the output of Firm 1
Consider the recipient's perspective in the global impact of development versus relief aid. Suppose a fixed amount of aid b is given to each worker in a developing country and
One month ago, they added five workers, and productivity also increased by 50,000 pages per day. Copiers cost about twice as much as workers. Would you recommend they hire a
Country A has 3500 units of labor and can produce two goods, manufactures and food. A’s producers take 7 units of labor to produce one unit of manufactures and 2 units to prod
Discuss why you would not expect all industries to have a similar relationship to the economy. Give an example of two industries that have different relationships to the econo