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What is a geographical monopoly?
When a market's potential profit is so limited by its geographic location that only a single seller decides to enter the market. That type of market is a geographic monopoly. An example would be a general store in a remote community.
Is milk monopoly market or a market with perfect competition?
It is a perfect competition There are numerous buyers and sellers. Who doesn't buy milk? With some exceptions (organic, 1%, reduced fat etc.) milk identical. Different companies don't produce different "types" of milk Buyers and sellers are well informed There are no major barriers preventing the free market to enter/exit
Compare and contrast perfect competition and monopolistic competition?
This is a rather common question within the Market Structure topic in Economics. In Market Structure, the Perfect Competition (PC) and the monopoly are considered extreme market structures, while other market structures also exist, like the oligolpoly and the monopolistic competition(MC). Before understanding the differences of these 2 market structure. It's important to realize that the PC market structure consists of many firms or sellers in an area or industry. The monopoly on the other hand, consists of a single seller. A good example, would be someone selling things on an island. The differences between the PC and the monopoly market structure are (1) Ease of entry and exit for firms (2) Type of product sold (3) Type of firm (4) Profit in short run and long run. First of all, is (1) ease of entry and exit for firms. For the PC market structure, new firms can easily enter the market structure, as there are no barriers of entry. This means that new firms who knows that there is a profit to be made in some area, location or industry can easily set up a new shop there. For the monopoly, there is substantial or high barriers of entry preventing new firms from entering the market structure. These barriers of entry are created by existing or dominant firms in a monopoly to prevent new firms or competitiors to enter the market structure. The second difference is (2) the type of product sold. For a PC market structure, the product sold is similar. This means that what one seller is selling, is what another seller is selling. Hence products in the PC market structure are perfect substitutes. We also assume that in PC market structure, the consumers have perfect knowledge of the product. This means that the consumers are aware of the price sold in another shop. For the monopoly, the product sold are not perfect substitutes, and can be rather unique. The third difference is the (3) type of firm. Since the PC market structure faces the above 2 characteristics, this means that the firm in this market structure are powerless to influence the price. This means they have no control to increase the price of the product. This is because if they increase the price of the product, and there are perfect competition, firms who increase the price, will lose out to other firms. Hence firms in PC market structure are considered to be Price Takers. Firms in monopoly market structure on the other hand, are Price Makers. This means that they can influence the price of their product sold to consumers. The monopoly is able to do that, as the monopolist is the single seller in a market. The last difference is the (4) existence of profit. For the PC firm, there is a possibility to earn abnormal profit in the short run, but not possible in the long run. This is because, in a PC market structure, when existing firms earn profit, new firms will enter the market structure, shrinking the profit. For the monopoly, there is a possibility to earn abnormal profit in short run and long run, as there is the existence of barriers of entry to prevent new firms to enter the market. Hope this helps. ( although I may have listed the differences here, they are not the only ones, there are others as well, but the rest can be complicated and might need the use of graphs ). (cheong@bgymail.gd.cn)
What are 4 characteristics of of pure competition?
the industry's demand curve is perfectly elastic
How do market structure affect supply and demand?
In a market economy, the prices of goods and services are determined by the forces of supply and demand. The market structure in which supply and demand set prices is called perfect competition. In perfect competition, there are a large number of buyers and sellers in the market, and each buyer and seller is a price taker. This means that each buyer and seller has limited ability to influence the market price, and must accept the current market price in order to participate in the market. Another characteristics of perfect competition is that the products offered by different sellers are considered to be homogeneous, meaning they are all essentially the same. In this type of market, the price will adjust to bring the quantity supplied and the quantity demanded into balance. When there is a shortage of a good, prices will rise and the quantity supplied will increase. When there is a surplus of a good, prices will fall and the quantity supplied will decrease. It's worth noting that in reality, most markets deviate from the theoretical ideal of perfect competition. There are many markets, such as the retail, where large companies dominate and smaller players struggle to enter. These markets are called oligopoly or Monopoly, and the firms in these markets have more control over prices. My Recommendation: πππππ://πππ.πππππππππ24.πππ/πππππ/435925/πΈπππππ/
What is a geographical monopoly?
When a market's potential profit is so limited by its geographic location that only a single seller decides to enter the market. That type of market is a geographic monopoly. An example would be a general store in a remote community.
Is milk monopoly market or a market with perfect competition?
It is a perfect competition There are numerous buyers and sellers. Who doesn't buy milk? With some exceptions (organic, 1%, reduced fat etc.) milk identical. Different companies don't produce different "types" of milk Buyers and sellers are well informed There are no major barriers preventing the free market to enter/exit
How does a market that is difficult to enter help a monopoly?
A market that is difficult to enter helps a monopoly by creating high barriers to entry, which limits competition and enables the monopoly to maintain its dominant position. These barriers can include significant capital requirements, regulatory hurdles, or strong brand loyalty. As a result, the monopoly can set prices without the pressure of competitors, maximizing profits and reinforcing its market power. Ultimately, this lack of competition allows the monopoly to operate with less innovation and efficiency compared to a more competitive market.
What is geographic monopoly?
When a market's potential profit is so limited by its geographic location that only a single seller decides to enter the market. That type of market is a geographic monopoly. An example would be a general store in a remote community.
Describes one of the main aspects of pure competition?
many buyers and sellers can freely enter or exit a market
Compare and contrast perfect competition and monopolistic competition?
This is a rather common question within the Market Structure topic in Economics. In Market Structure, the Perfect Competition (PC) and the monopoly are considered extreme market structures, while other market structures also exist, like the oligolpoly and the monopolistic competition(MC). Before understanding the differences of these 2 market structure. It's important to realize that the PC market structure consists of many firms or sellers in an area or industry. The monopoly on the other hand, consists of a single seller. A good example, would be someone selling things on an island. The differences between the PC and the monopoly market structure are (1) Ease of entry and exit for firms (2) Type of product sold (3) Type of firm (4) Profit in short run and long run. First of all, is (1) ease of entry and exit for firms. For the PC market structure, new firms can easily enter the market structure, as there are no barriers of entry. This means that new firms who knows that there is a profit to be made in some area, location or industry can easily set up a new shop there. For the monopoly, there is substantial or high barriers of entry preventing new firms from entering the market structure. These barriers of entry are created by existing or dominant firms in a monopoly to prevent new firms or competitiors to enter the market structure. The second difference is (2) the type of product sold. For a PC market structure, the product sold is similar. This means that what one seller is selling, is what another seller is selling. Hence products in the PC market structure are perfect substitutes. We also assume that in PC market structure, the consumers have perfect knowledge of the product. This means that the consumers are aware of the price sold in another shop. For the monopoly, the product sold are not perfect substitutes, and can be rather unique. The third difference is the (3) type of firm. Since the PC market structure faces the above 2 characteristics, this means that the firm in this market structure are powerless to influence the price. This means they have no control to increase the price of the product. This is because if they increase the price of the product, and there are perfect competition, firms who increase the price, will lose out to other firms. Hence firms in PC market structure are considered to be Price Takers. Firms in monopoly market structure on the other hand, are Price Makers. This means that they can influence the price of their product sold to consumers. The monopoly is able to do that, as the monopolist is the single seller in a market. The last difference is the (4) existence of profit. For the PC firm, there is a possibility to earn abnormal profit in the short run, but not possible in the long run. This is because, in a PC market structure, when existing firms earn profit, new firms will enter the market structure, shrinking the profit. For the monopoly, there is a possibility to earn abnormal profit in short run and long run, as there is the existence of barriers of entry to prevent new firms to enter the market. Hope this helps. ( although I may have listed the differences here, they are not the only ones, there are others as well, but the rest can be complicated and might need the use of graphs ). (cheong@bgymail.gd.cn)
What are 4 characteristics of of pure competition?
the industry's demand curve is perfectly elastic
What is the difference between monoplistic compition and perfect compition?
Monopolistic competition versus perfect competition in the long run: The most important difference between monopolistic competition and perfect competition is product differentiation. COMPARISON: Perfect competition: the long run equilibrium where MR=MC=P=AR=AC (at the minimum); Monopolistic competition: the long run equilibrium where MR=MC < P = AC (above the minimum)); This is a rather common question within the Market Structure topic in Economics. In Market Structure, the Perfect Competition (PC) and the monopoly are considered extreme market structures, while other market structures also exist, like the oligopoly and the monopolistic competition(MC). Before understanding the differences of these 2 market structure. It's important to realize that the PC market structure consists of many firms or sellers in an area or industry. The monopoly on the other hand, consists of a single seller. A good example, would be someone selling things on an island. The differences between the PC and the monopoly market structure are (1) Ease of entry and exit for firms (2) Type of product sold (3) Type of firm (4) Profit in short run and long run. First of all, is (1) ease of entry and exit for firms. For the PC market structure, new firms can easily enter the market structure, as there are no barriers of entry. This means that new firms who knows that there is a profit to be made in some area, location or industry can easily set up a new shop there. For the monopoly, there is substantial or high barriers of entry preventing new firms from entering the market structure. These barriers of entry are created by existing or dominant firms in a monopoly to prevent new firms or competitors to enter the market structure. The second difference is (2) the type of product sold. For a PC market structure, the product sold is similar. This means that what one seller is selling, is what another seller is selling. Hence products in the PC market structure are perfect substitutes. We also assume that in PC market structure, the consumers have perfect knowledge of the product. This means that the consumers are aware of the price sold in another shop. For the monopoly, the product sold are not perfect substitutes, and can be rather unique. The third difference is the (3) type of firm. Since the PC market structure faces the above 2 characteristics, this means that the firm in this market structure are powerless to influence the price. This means they have no control to increase the price of the product. This is because if they increase the price of the product, and there are perfect competition, firms who increase the price, will lose out to other firms. Hence firms in PC market structure are considered to be Price Takers. Firms in monopoly market structure on the other hand, are Price Makers. This means that they can influence the price of their product sold to consumers. The monopoly is able to do that, as the monopolist is the single seller in a market. The last difference is the (4) existence of profit. For the PC firm, there is a possibility to earn abnormal profit in the short run, but not possible in the long run. This is because, in a PC market structure, when existing firms earn profit, new firms will enter the market structure, shrinking the profit. For the monopoly, there is a possibility to earn abnormal profit in short run and long run, as there is the existence of barriers of entry to prevent new firms to enter the market.
What is a puremonopoly?
When one company has the control over the entire market for a product, usually because of barriers to entry. With the ability of price control and supply setting, this monopoly is extremely rare in any sort of market unless it is a government granted monopoly because of some inherent factors that make it crucial for a monopoly to exist. Otherwise, it may exist under certain circumstances, such as; a patent created monopoly which gives the company unilateral control over the extire market for a product, a cartel or illegal trust monopoly, or a natural monopoly where the supply for a product comes from one source because of natural barriers to entry that makes it nearly impossible for others to enter the market and survive.
How do market structure affect supply and demand?
In a market economy, the prices of goods and services are determined by the forces of supply and demand. The market structure in which supply and demand set prices is called perfect competition. In perfect competition, there are a large number of buyers and sellers in the market, and each buyer and seller is a price taker. This means that each buyer and seller has limited ability to influence the market price, and must accept the current market price in order to participate in the market. Another characteristics of perfect competition is that the products offered by different sellers are considered to be homogeneous, meaning they are all essentially the same. In this type of market, the price will adjust to bring the quantity supplied and the quantity demanded into balance. When there is a shortage of a good, prices will rise and the quantity supplied will increase. When there is a surplus of a good, prices will fall and the quantity supplied will decrease. It's worth noting that in reality, most markets deviate from the theoretical ideal of perfect competition. There are many markets, such as the retail, where large companies dominate and smaller players struggle to enter. These markets are called oligopoly or Monopoly, and the firms in these markets have more control over prices. My Recommendation: πππππ://πππ.πππππππππ24.πππ/πππππ/435925/πΈπππππ/
What are the Elements of pure competition are?
The elements of pure competition include a large number of buyers and sellers, homogeneous products, free entry and exit from the market, and perfect information. In this market structure, no single buyer or seller can influence the market price, as all products are identical and consumers have full knowledge of prices and quality. Additionally, the absence of barriers to entry or exit allows new firms to enter the market easily, ensuring competition remains vibrant. This leads to an efficient allocation of resources and maximizes consumer welfare.
A few sellers may behave if they operate in a perfectly competitive market is the market?
In a perfectly competitive market, individual sellers are price takers, meaning they cannot influence the market price and must accept the prevailing price determined by supply and demand. They will typically sell homogeneous products and face intense competition, leading to minimal profit margins. Sellers will aim to minimize costs and maximize efficiency to remain viable, as any attempt to raise prices above the market level will result in losing customers to competitors. Ultimately, in the long run, economic profits will be driven to zero as new competitors enter the market.
