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How does Microsoft set the price for their products?
monopoly power
Why monopoly has no suply curve?
Monopoly has no supply curve because the monopolist does not take price as given, but set both price and quantity from the demand curve.
Can monopoly set both the price and quantity?
Yes, a monopoly can set both the price and quantity of its product. Unlike firms in competitive markets, a monopolist faces a downward-sloping demand curve, allowing it to choose the price by adjusting the quantity produced. By selecting a quantity that maximizes its profits, the monopolist can then set the corresponding price based on the demand for that quantity. This ability to influence both price and quantity is a defining characteristic of monopoly power.
Are eBay and Amazon examples of monopolistic competition?
A monopoly is when one firm has a controlling share in the market. As such he can set the price. eBay is a monopoly Amazon WAS a monopoly but is now simply an online retailer
Why does the government set a price floor on goods?
Price floors on some goods are set by Gov. because by doing so it will keep the price of certain goods above its equilibrium price. In other words, gov. sets a price floor to keep a minimum price for some goods. For instance, something that could cost $1 (without gov intervention), ends up costing $3 due to a price floor. There's usually a LOT of lobbying in congress to set a price floor for a specific good. Once the price floor has been set, there's usually an excess supply of the particular good or goods.
How does Microsoft set the price for their products?
monopoly power
what is the differences between Perfect Competition and Monopoly Market?
The difference between a monopoly market and a perfectly competitive market is that in a perfectly competitive market there are many sellers and buyers, the traded goods are homogeneous goods or the same goods and sellers are not free to set prices. whereas, a monopoly market is a market that has only one seller, so buyers have no other choice and sellers have a large influence on price changes.
Why monopoly has no suply curve?
Monopoly has no supply curve because the monopolist does not take price as given, but set both price and quantity from the demand curve.
What are the Monopoly auction rules for determining the starting price?
In Monopoly, the starting price for an auction is typically set at the face value of the property being auctioned.
Can monopoly set both the price and quantity?
Yes, a monopoly can set both the price and quantity of its product. Unlike firms in competitive markets, a monopolist faces a downward-sloping demand curve, allowing it to choose the price by adjusting the quantity produced. By selecting a quantity that maximizes its profits, the monopolist can then set the corresponding price based on the demand for that quantity. This ability to influence both price and quantity is a defining characteristic of monopoly power.
Are eBay and Amazon examples of monopolistic competition?
A monopoly is when one firm has a controlling share in the market. As such he can set the price. eBay is a monopoly Amazon WAS a monopoly but is now simply an online retailer
Why does the government set a price floor on goods?
Price floors on some goods are set by Gov. because by doing so it will keep the price of certain goods above its equilibrium price. In other words, gov. sets a price floor to keep a minimum price for some goods. For instance, something that could cost $1 (without gov intervention), ends up costing $3 due to a price floor. There's usually a LOT of lobbying in congress to set a price floor for a specific good. Once the price floor has been set, there's usually an excess supply of the particular good or goods.
why is pure competition better compared to monopoly?
Yes, perfect competition allows the market to dictate prices where as a monopoly can set any price because there is no other alternative.
What is an Example of Pure Competition in Marketing?
When monopoly over the market isn't existing. If anybody(actor) can set their own price for their price at a competitive level.
Is a monopoly a price setter?
Yes, a monopoly is a price setter. Unlike firms in competitive markets that are price takers and must accept the market price, a monopoly has significant control over the price of its product because it is the sole provider in the market. This allows the monopolist to set prices at a level that maximizes its profits, typically above marginal cost, leading to reduced output and higher prices for consumers compared to competitive markets.
What equilibruim price do firms operating under conditions of monopoly use?
Firms operating under conditions of monopoly set their equilibrium price where marginal cost (MC) equals marginal revenue (MR). This price is typically higher than the marginal cost, allowing the monopolist to maximize profits by restricting output. Unlike firms in competitive markets, a monopolist has the market power to influence the price, leading to higher prices and lower quantities of goods sold compared to competitive equilibrium.
A government-set price ceiling will lower equilibrium price and quantity in a market?
A surplus of goods occur
