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Yes, a monopoly is a price setter. Unlike firms in competitive markets that are price takers and must accept the market price, a monopoly has significant control over the price of its product because it is the sole provider in the market. This allows the monopolist to set prices at a level that maximizes its profits, typically above marginal cost, leading to reduced output and higher prices for consumers compared to competitive markets.
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Which do you think a firm would prefer price setter or price taker?
They would prefer to be a price setter. This would imply control over the price. In some models this is a monopoly or an oligopoly. (As a side note, in the real world, EVERY firm has some control over the price of their good no matter how small that control may be, but this answer refers to models.) The technical reason for this is because in an economy in which firms are price takers, firms produce at the level where their Marginal Revenue equals Marginal Cost, but Marginal Revenue is set (it's the price. In a perfectly competitive economy it's also the minimum of the Average Variable Cost curve). So they can only vary their Marginal Cost by changing how much they produce. In a price setter economy, the price curve is changeable by the price setting. They will also produce where MR = MS, but they will produce a lesser quantity of goods because this artificial shortage will raise the price. This ALWAYS results in a higher profit than in a competitive economy.
Why monopoly has no suply curve?
Monopoly has no supply curve because the monopolist does not take price as given, but set both price and quantity from the demand curve.
The controller of a monopoly sets the price of goods by charging?
the price at which the profit is maximized
How does a monopoly fix its price of its product?
Seb is a LAD
How does Microsoft set the price for their products?
monopoly power
What is the starting price for the monopoly auction?
The starting price for the Monopoly auction is usually 1.
How does a monopoly fix its price?
mw3
How does monopoly fix its price?
mw3
What is the price to unmortgage a property in Monopoly?
In Monopoly, the price to unmortgage a property is the mortgage value plus an additional 10 of the mortgage value.
Which do you think a firm would prefer price setter or price taker?
They would prefer to be a price setter. This would imply control over the price. In some models this is a monopoly or an oligopoly. (As a side note, in the real world, EVERY firm has some control over the price of their good no matter how small that control may be, but this answer refers to models.) The technical reason for this is because in an economy in which firms are price takers, firms produce at the level where their Marginal Revenue equals Marginal Cost, but Marginal Revenue is set (it's the price. In a perfectly competitive economy it's also the minimum of the Average Variable Cost curve). So they can only vary their Marginal Cost by changing how much they produce. In a price setter economy, the price curve is changeable by the price setting. They will also produce where MR = MS, but they will produce a lesser quantity of goods because this artificial shortage will raise the price. This ALWAYS results in a higher profit than in a competitive economy.
What controls price and availability in an industry?
monopoly
What is the highest price in monopoly?
Boardwalk is the highest property and it is $400 in the original United States Monopoly.
Why monopoly has no suply curve?
Monopoly has no supply curve because the monopolist does not take price as given, but set both price and quantity from the demand curve.
What are the Monopoly auction rules for determining the starting price?
In Monopoly, the starting price for an auction is typically set at the face value of the property being auctioned.
In monopoly what is the difference in price between the least expensive price and the most expensive price?
340
The controller of a monopoly sets the price of goods by charging?
the price at which the profit is maximized
How does a monopoly fix its price of its product?
Seb is a LAD
