0
In a pure monopoly, the seller typically charges more than the equilibrium price that would exist in a competitive market. This is because the monopolist has market power and can set prices above marginal cost to maximize profits, leading to higher prices for consumers. Unlike in competitive markets, where prices are driven by supply and demand interactions, a monopolist restricts output to create scarcity and maintain higher prices. Thus, the price is generally above the equilibrium level found in a perfectly competitive market.
What else can I help you with?
How can a consumer can attain equilibrium through ic curve?
consumer attains equilibrium if the price of good by seller is same as price decided by buyer.
Why is a price ceiling a distortion of the price mechanism?
price ceiling makes a bar on the equilibrium prices. it compels the suppliers to charge the ceiling price from the consumers. it is generally lower than the equilibrium price. at this price quantity supplied is less than the quantity demanded and the market is not in equilibrium.
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.
Can a monopoly charge any price it wants for a good?
Any company can charge any price it wants for a good. The real question is whether people will be willing to pay that price. Monopolies are not immune to the laws of supply and demand.
If price is above the equilibrium level competition among seller to reduce the resulting?
Surplus will increase quantity demanded and decreae quantity supplied.
How can a consumer can attain equilibrium through ic curve?
consumer attains equilibrium if the price of good by seller is same as price decided by buyer.
Why is a price ceiling a distortion of the price mechanism?
price ceiling makes a bar on the equilibrium prices. it compels the suppliers to charge the ceiling price from the consumers. it is generally lower than the equilibrium price. at this price quantity supplied is less than the quantity demanded and the market is not in equilibrium.
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.
Can a seller charge more then whats on the price tag?
By law, no, False advertising Unless it is tax
How does a monopoly auction work and what are the key factors that determine the outcome of the auction?
In a monopoly auction, a single seller offers a product or service to multiple buyers. The key factors that determine the outcome of the auction include the starting price set by the seller, the number of buyers participating, the demand for the product or service, and the strategies used by buyers to outbid each other. The highest bidder typically wins the auction and pays the final price set by the seller.
Can a monopoly charge any price it wants for a good?
Any company can charge any price it wants for a good. The real question is whether people will be willing to pay that price. Monopolies are not immune to the laws of supply and demand.
If price is above the equilibrium level competition among seller to reduce the resulting?
Surplus will increase quantity demanded and decreae quantity supplied.
Is monopoly price a higher price?
Generally yes. In a monopoly they charge whatever price they choose because there is no competition. Governments go to great lengths to limit the impact of monopolies. In theory they have complete control over the price but consumer consternation could lead to price regulation in sensitive areas.
Do you pay a real estate agent that sells you a home?
No, they will charge the seller a fee based on the price of the house.
Why is monopoly good?
Good because it allows you to charge outrageously high prices from buyers who have no choice but to buy from you. You can also save money by providing very poor service to your customers. You may be able to buy things cheaper because your vendors have no one to sell to but you. You may be able to pay specialized workers less because they have nowhere else to work with their particular skills. Thus monopoly helps you become rich at the expense of others. Some people would call that good. Others might not.
The price of peanut butter rises due to a blight on the peanut crop. peanut butter and jelly are complements. What happens to the equilibrium quantity and price of jelly?
(A)Equilibrium price falls, equilibrium quantity increases (B) Equilibrium price rises, equilibrium quantity falls (C) Equilibrium price falls, equilibrium quantity falls (D) Equilibrium price rises, equilibrium quantity rises
Discuss equilibrium of a firm under monopoly what are the conditions of equilibrium?
when marginal revenue equal to marginal cost,when marginal cost curve cut marginal revenue curve from the below and when price is greter than average total cost
