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the monopolist produces at a point where marginal revenue=marginal cost, he uses this quantity, and goes up vertically until the demand curve is met. This quantity is lower than a competitive equilibrium and thus, price is higher as well.
Wiki User
∙ 12y ago
Wiki User
∙ 15y agoMarket equilibrium (Demand and Supply mechanism) - producers are passive price-takers
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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.
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.
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.
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.
A government-set price ceiling will lower equilibrium price and quantity in a market?
A surplus of goods occur
What are the concequences of implimenting minumum or maximum prices for goods and services?
When a maximum price is set for a good or service, it is set below the equilibrium. This is supposed to help consumers but due to the excess demand, a black market will emerge and goods and services will be sold at black market prices (which will be higher than the maximum price or price ceiling) A minumum price is set abouve the equlibrium price. This is done to help producers, however all this will do is create an excess supply and a black market will emerge where goods will be sold at a lower price.
What was established to set the maximum prices that could be charged on consumer goods?
Office of price administration
Your pilot is burning and no hot water supply is there what must be the problem?
Gas controller is defective /gas controller set for vacation / Gas controller set to low a temperature / Gas controller set on pilot
1 How does consumer perception of the product value can set the ceiling for prices?
Consumers do not set a price ceiling on goods. Only the government can set a price ceiling. However, the consumer perception of a good's value does affect the equilibrium price and quantity demanded. This is the price that the good is sold at and how many of the good is demanded at that price.
