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A perfect competitive market and pure monopoly market both have to follow the "law of demand".
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One difference between a perfectly competitive firm and a monopoly is that a perfectly competitive firm produces where?
perfectly competitive industry become a monopoly， what changes
How are a monopolistic firm and a competitive firm similar?
Monopoly means that there are no competitor for your product or servises
Can a perfectly competitive firm set a price for its products that is above marginal cost?
A perfectly competitive firm would set its prices at a perfectly competitive price.
What type of curve does the perfectly competitive firm face?
perfectly elastic demand function.
If a perfectly competitive firm's price is above its average total cost the firm?
is earning a profit
One difference between a perfectly competitive firm and a monopoly is that a perfectly competitive firm produces where -?
perfectly competitive industry become a monopoly， what changes
One difference between a perfectly competitive firm and a monopoly is that a perfectly competitive firm produces where?
perfectly competitive industry become a monopoly， what changes
How are a monopolistic firm and a competitive firm similar?
Monopoly means that there are no competitor for your product or servises
Can a perfectly competitive firm set a price for its products that is above marginal cost?
A perfectly competitive firm would set its prices at a perfectly competitive price.
Is Apple Computer a perfectly competitive firm?
yes
What type of curve does the perfectly competitive firm face?
perfectly elastic demand function.
If a perfectly competitive firm's price is above its average total cost the firm?
is earning a profit
Explain how monopoly causes an inefficient allocation of resources when the competitive firm does not even when both seek to maximize profits?
Explain how monopoly causes an inefficient allocation of resources when the competitive firm does not even when both seek to maximize profit
What type of competitive structure exists when a firm produces a product that has no close substitutes?
monopoly
Why monopoly is allocatively inefficient relative to perfectly competitive market?
A monopoly produces at a point where marginal revenue equals marginal cost, they don't charge this price, but charge a higher price that corresponds with the demand they face. Therefore they produce less and charge more than a competitive firm that equates the price to marginal cost.
Why is a Monopoly markets undesirable RELATIVE to perfect competitive market discuss?
In Monopoly, there is no market power as the monopoly firm is the only supplier and holds pricing power. However in a perfect competitive market, prices are set by interaction of supply and demand. This is why monopoly markets are undesirable relative to perfect competitive market.
What is the most important pricing strategy for a perfectly competitive firm?
Minimizing cost
