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In a pure monopoly will the seller charge more than the equilibrium price?
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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.
If price is above the equilibrium level competition among seller to reduce the resulting?
Surplus will increase quantity demanded and decreae quantity supplied.
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.
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.
If price is above the equilibrium level competition among seller to reduce the resulting?
Surplus will increase quantity demanded and decreae quantity supplied.
Can a seller charge more then whats on the price tag?
By law, no, False advertising Unless it is tax
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.
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.
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
What is another term for marketing clearing price?
equilibrium price
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.
What equilibrium price and equilibrium quantity?
equilibrium price and equilibrium quantity?: equilibrium price: When the price is above the equilibrium point there is a surplus of supply The market price at which the supply of an item equals the quantity demanded Price at which the quantity of goods producers wish to supply matches the quantity demanders want to purchase sa madaling salita supply=demand=price equilibrium quantity: Amount of goods or services sold at the equilibrium price The quantity demanded or supplied at the equilibrium price. supply=demand ayos?
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
