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What must a monopoly such as a public utility account for when setting its prices?
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Which of these controls prices and availability in an industry?
Monopoly ~ APEX :)
What happens to price when there is a monopoly?
When there is a monopoly, the general direction of prices is upward. Because of no competition, buyers have no other choice from where to purchase the products. The monopoly company is then free to raise prices at will.
Is an electricity company an example of monopoly?
Yes, it is more beneficial for the economy to have utilities as a monopoly, although they are considered as a 'natural' monopoly. Governments can nationalise the utility in order to maximise social welfare rather than maximise profit, this will keep prices low, keep output high and increase consumer surplus and consumer choice. Your welcome
What is government fixed prices?
There are several examples of governments fixing prices. In terms of public utility prices, the State government will hear requests from utility companies for raising prices. The government will either approve the request, deny the request or negotiate a better price increase. The utility will have a State sanctioned monopoly where it does business. Part and parcel with price fixing is setting the minimum wage laws. In a totally free economy, wages are paid either by union - management negotiations, or based on market conditions. The Federal & State governments "fix" the minimum wage rate. In some cases this means small employers who cannot afford a hike in the minimum wage will lay off workers or cancel plans to expand. On the other hand, minimum workers will see an increase in pay.
Under which market structure is there no control over prices?
monopoly
What is a bargaining power?
A bargaining power is the ability to influence the setting of prices or wages, usually from a monopoly position.
A group of companies that agree to cooperate with each other by setting prices production quotas and wages is called?
A trust or a monopoly
Which of these controls prices and availability in an industry?
Monopoly ~ APEX :)
What happens to price when there is monopoly?
When there is a monopoly, the general direction of prices is upward. Because of no competition, buyers have no other choice from where to purchase the products. The monopoly company is then free to raise prices at will.
What happens to price when there is a monopoly?
When there is a monopoly, the general direction of prices is upward. Because of no competition, buyers have no other choice from where to purchase the products. The monopoly company is then free to raise prices at will.
Is an electricity company an example of monopoly?
Yes, it is more beneficial for the economy to have utilities as a monopoly, although they are considered as a 'natural' monopoly. Governments can nationalise the utility in order to maximise social welfare rather than maximise profit, this will keep prices low, keep output high and increase consumer surplus and consumer choice. Your welcome
Which of the these controls prices and availability in an industry?
A monopoly controls prices and availability in an industry.
What is government fixed prices?
There are several examples of governments fixing prices. In terms of public utility prices, the State government will hear requests from utility companies for raising prices. The government will either approve the request, deny the request or negotiate a better price increase. The utility will have a State sanctioned monopoly where it does business. Part and parcel with price fixing is setting the minimum wage laws. In a totally free economy, wages are paid either by union - management negotiations, or based on market conditions. The Federal & State governments "fix" the minimum wage rate. In some cases this means small employers who cannot afford a hike in the minimum wage will lay off workers or cancel plans to expand. On the other hand, minimum workers will see an increase in pay.
How might monopoly affect prices?
a monopoly if it has a high demand can push prices up simply people will pay for something that is in demand where as a monopoly with low demand will carry on selling the item for less but the way a monopoly works means that the person who is operating the monopoly will shift the supply lower to always push the price up.
Under which market structure is there no control over prices?
monopoly
How does a monopoly increases a corporations profits?
by eliminating competition to control prices
How does a monopoly increase a corporation profit?
by eliminating competition to control prices
