It will be so because it will not achieve a social equilbrium of marginal benefit (demand) = marginal cost (supply). It will instead set a private profit equilibrium where private benefit (marginal revenue) = marginal cost and thus create a deadweight inefficiency equal to the difference in total social surplus between the regions.
This depends on the market involved and if the monopoly is monopoly in both. With price-discriminating monopolies, they convert all consumer surplus to producer surplus by charging exactly maximum willingness-to-pay (WTP) for each unit left of the marginal cost = marginal benefit monopoly profit condition. If the markets and conditions are the same, this condition will be true in both.
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.
I only know two : oligopoly and monopoly. sorry i dont know the third...
1. only one firm sell the product or good 2. No close substitute 3. There are barriers to entry into monopoly competition
A free market is a market where prices are determined by supply and demand. Free markets contrast with controlled markets in which prices, supply or demand id directly controlled.
micro economics is applied in determining the output and prices, demand and supply of goods, working of different markets like perfect competition, monopoly, oligopolistic etc.
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.
monopoly
I only know two : oligopoly and monopoly. sorry i dont know the third...
1. only one firm sell the product or good 2. No close substitute 3. There are barriers to entry into monopoly competition
european nations wanted monopoly control of markets and resources.
A free market is a market where prices are determined by supply and demand. Free markets contrast with controlled markets in which prices, supply or demand id directly controlled.
A free market is a market where prices are determined by supply and demand. Free markets contrast with controlled markets in which prices, supply or demand id directly controlled.
In traditional markets, the value of a resource is determine by demand. If the product is highly demanded, then the value will be high.
micro economics is applied in determining the output and prices, demand and supply of goods, working of different markets like perfect competition, monopoly, oligopolistic etc.
There is no standard amount, pricing being determined by individual markets where the condominium or house may be located.
It was called a monopoly because if you wanted kerosen, most likely you would have to get it from one of Rockefellers refiners. He supplied kerosene by tank cars that brought the fuel to local markets, and tank wagons then delivered to retail customers, bypassing everybody else.
Imperfect competition is a competitive market situation where there are many sellers, but they are selling dissimilar goods. There are four types of imperfect markets, one is a monopoly, an oligopoly, a monopolistic competition, and a monopsony.