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When a second firm enters a monopolist's market what will the initial demand curve facing the monopolist do?
shift to the left.
What is the demand curve faced by a pure monopolist?
The demand curve faced by a pure monopolist is of downward sloping in shape.
IF regulation imposes marginal cost pricing on natural monopoly then the monopoly will?
When the regulating agency forces this firm to set its price at marginal cost, we havemarginal cost pricing. MONOPOLY WILL LOSS. The whole point of government involvement here relates to the fact that regulators wanted to make things more efficient. However, achieving this particular type of efficiency causes the firm to eventually exit the industry -- leaving consumers with nothing.Therefore, to prevent the firm from leaving, our regulator must also allow the monopolist to cover her losses. One way to do this is by subsidizing the monopolist the amount of her loss.
The demand curve for a monopolist differs from the demand curve faced by a competitive firm?
The pure monopolist's market situation differs from that of a competitive firm in that the monopolist's demand curve is downsloping, causing the marginal-revenue curve to lie below the demand curve. Like the competitive seller, the pure monopolist will maximize profit by equating marginal revenue and marginal cost. Barriers to entry may permit a monopolist to acquire economic profit even in the long run.
What Monopolist can decide?
they decide price and quantity.
Which pricing policy adopted by Nike in south African country?
Which pricing policy adopted by nike in south African country?"
What is the pricing policy on cakes?
about $6.00
What is Heineken pricing strategy?
Globally, Heineken utilizes the premium pricing policy. This is effective as the Heineken brand is unique to that of competitors.
How do you answer what is good?
if a customer complanied about an assocaiate in your store pricing or a policy what would you do
What are the release dates for The Monopolist - 1915?
The Monopolist - 1915 was released on: USA: 21 August 1915
How do you answer 'What is good customer?
if a customer complanied about an assocaiate in your store pricing or a policy what would you do
What are the benefits of health insurance policy?
See the link on Pricing & Benefits for Calfornia
When a second firm enters a monopolist's market what will the initial demand curve facing the monopolist do?
shift to the left.
Effect of a monopolist's price increase?
If a monopolist raises his prices above marginal cost, he will increase his profits. This seems like a good thing for the monopolist. However, the down side is that it reduces the well-being of consumers. Most times, the harm to consumers is greater than the gain of the monopolist.
What is the demand curve faced by a pure monopolist?
The demand curve faced by a pure monopolist is of downward sloping in shape.
IF regulation imposes marginal cost pricing on natural monopoly then the monopoly will?
When the regulating agency forces this firm to set its price at marginal cost, we havemarginal cost pricing. MONOPOLY WILL LOSS. The whole point of government involvement here relates to the fact that regulators wanted to make things more efficient. However, achieving this particular type of efficiency causes the firm to eventually exit the industry -- leaving consumers with nothing.Therefore, to prevent the firm from leaving, our regulator must also allow the monopolist to cover her losses. One way to do this is by subsidizing the monopolist the amount of her loss.
What is the meaning of pricing policy?
Pricing policy is the method by which a store manager say decides on a sale price for a good examples; 1. cost plus pricing : taking the cost price of the good and adding the desired profit margin 2. premium pricing : if a good is in high demand, ie something with a well known brand name, then a premium price can be set as people will want to purchase the item anyway.
