Which of the following is a characteristic of a monopoly. Pure Monopoly Flashcards 2022-10-07

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A monopoly is a market structure in which there is only one firm that produces and sells a particular good or service. This firm, known as the monopolist, has complete control over the market and is the only supplier of the good or service in question. Monopolies can arise in a number of different ways, including through government grants, the acquisition of rival firms, or through the possession of key resources or technologies.

There are several characteristics that define a monopoly. One of the most prominent is the absence of competition. Since there is only one firm in the market, there are no other firms to compete with the monopolist. This gives the monopolist the ability to set prices at whatever level they choose, as there is no pressure from competitors to keep prices low.

Another characteristic of a monopoly is the high barriers to entry. These barriers can be either natural or artificial. Natural barriers to entry may include the possession of unique resources or technologies, or economies of scale that make it difficult for new firms to enter the market and compete. Artificial barriers to entry, on the other hand, may include government regulation or licensing requirements that make it difficult for new firms to enter the market.

In addition to these characteristics, monopolies often have significant market power. This refers to the ability of the monopolist to influence prices and output in the market. Because there is only one firm in the market, the monopolist has complete control over the supply of the good or service, and can therefore manipulate prices to their advantage. This can lead to higher prices and lower output, as the monopolist has no incentive to increase production if they can sell at higher prices.

Finally, a monopoly may also exhibit price discrimination, which refers to the practice of charging different prices to different groups of customers for the same good or service. This can be based on a variety of factors, such as location, income, or the willingness to pay. Price discrimination can allow the monopolist to maximize profits by charging higher prices to customers who are willing to pay more, while still offering lower prices to those who are less willing or able to pay.

Overall, the absence of competition, high barriers to entry, significant market power, and the ability to engage in price discrimination are all characteristics of a monopoly. These features allow the monopolist to exercise a high degree of control over the market and maximize profits, but can also lead to higher prices and reduced output for consumers.

childhealthpolicy.vumc.org of the following is a characteristic of a childhealthpolicy.vumc.org 3

which of the following is a characteristic of a monopoly

Patents, economies of scale, and resource ownership secure the firm's monopoly. Merck will apply for a patent on the vaccine that grants it the monopoly rights to the vaccine for many years. Producer surplus is the difference between the lowest price a firm would be willing to accept and the price it actually receives. Economic surplus is the sum of consumer surplus and producer surplus. If the firm produces output Q2 at an average cost of ATC3, then the firm is Multiple Choice A. Government blocks entry of more than one firm into the market. Because a monopolist does not face competition from other firms, the outcome in a market with a monopoly a.


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Pure Monopoly Flashcards

which of the following is a characteristic of a monopoly

A , price exceeds marginal cost, resulting in allocative inefficiency. Which of the following is a characteristic of managerial accounting?. A musician obtains a copyright for her original song. There are barriers to entry into the market. This makes the Cardinals organization a Multiple Choice A. The Aluminum Company of America Alcoa was essentially a monopoly because A. Presence of a single seller G.

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Which of the following are characteristics of a monopoly? a. Firms are price makers b. Firms are price takers c. Only a few firms exist in the industry and these firms share total market power d. Ther

which of the following is a characteristic of a monopoly

PERFECT COMPETITION, CHARACTERISTICS: The four key characteristics of perfect competition are: 1 a large number of small firms, 2 identical products sold by all firms, 3 perfect resource mobility or the freedom of entry into and exit out of the industry, and 4 perfect knowledge of prices and technology. The relevant market has been identified if A. It is one of the most controversial cases of monopoly and dominance on the planet. In monopolistic competition, many firms sell close substitutes in a market that is fairly easy to enter. One firm has control of a key resource necessary to produce a good. Each maximizes profits by producing a quantity for which marginal revenue equals marginal cost. Both a competitive firm and a monopolist are price makers.

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Which is most characteristic of a pure monopoly?

which of the following is a characteristic of a monopoly

There is only one firm in the industry g. Because the lower price of the extra unit of output only applies to subsequent units of output. We can identify close substitutes by looking at the effect of a price increase. Market power The ability of a firm to charge a price greater than marginal cost. A monopoly can earn positive profits because it a.

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Unit 11 Flashcards

which of the following is a characteristic of a monopoly

There is some evidence to suggest that X-inefficiency is Multiple Choice A. The information it provides is extremely precise. At its profit-maximizing output, this firm's total revenue will be Multiple Choice A. A monopolist is a price taker in an industry B. C all workers are paid the same wage. The marginal revenue curve is horizontal at the industry equilibrium price.

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Which of the following is a characteristic of a monopoly? a. The firm produces a product that has many close substitutes. b. There are barriers to entry into the market. c. The firm has no control over price. d. The firm's demand curve is perfectly elasti

which of the following is a characteristic of a monopoly

Merck will have a monopoly on this vaccine because of economies of scale. Only a few firms exist in the industry and these firms share total market power d. In monopoly entry is blockaded by definition. If a profit-maximizing monopolist faces a downward-sloping market demand curve, its a. Profits are maximized by producing at the level of output where marginal revenue is equal to marginal cost. Which of the following statements is correct? Ease of entry for other firms. Collusion An agreement among firms to charge the same price or otherwise not to compete.

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1. Which of the following is a characteristic of a monopoly? a. The firm produces a product that has many close substitutes. b. There are barriers to entry in the market. c. The firm has no control

which of the following is a characteristic of a monopoly

They are one of many suppliers of specific services in a large geographic area. One firm has control of a key resource required to produce a good or service. In the United States A. For a monopolist, marginal revenue is a. Identify the correct statement: A.

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Which of the following is a characteristic of pure monopoly? a. one seller of the product b. low barriers to entry c. close substitute products d. perfect information

which of the following is a characteristic of a monopoly

Dentsply, a dominant American maker of false teeth, unlawfully prevented independent distributors of false teeth from carrying competing brands. It must be prepared. Which of the following are assumptions made in the model of pure monopoly? A monopolist can make an economic profit in the long run because of a. D the marginal cost of producing output is constant. A monopolist cannot change its product price by changing the quantity supplied of the product.

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