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Is an electricity company an example of monopoly?
Yes, it is more beneficial for the economy to have utilities as a monopoly, although they are considered as a 'natural' monopoly. Governments can nationalise the utility in order to maximise social welfare rather than maximise profit, this will keep prices low, keep output high and increase consumer surplus and consumer choice. Your welcome
Who benefit a monopoly?
The owner of the monopoly benefits most.
Where is consumer surplus located on a monopoly graph?
Consumer surplus is located above the price and below the demand curve on a monopoly graph.
Which type of competition leads to exploitation of consumer?
Monopoly
What is the difference between the term 'monopoly' and 'natural monopoly'?
The difference between the term 'monopoly' and 'natural monopoly' is a monopoly is a market situation one group controls the availability and price of a service or item. A natural monopoly is a service or item that is provided by a single sorce. An example would be transportation like buses, or taxies.
Is an electricity company an example of monopoly?
Yes, it is more beneficial for the economy to have utilities as a monopoly, although they are considered as a 'natural' monopoly. Governments can nationalise the utility in order to maximise social welfare rather than maximise profit, this will keep prices low, keep output high and increase consumer surplus and consumer choice. Your welcome
Who benefit a monopoly?
The owner of the monopoly benefits most.
Where is consumer surplus located on a monopoly graph?
Consumer surplus is located above the price and below the demand curve on a monopoly graph.
Which type of competition leads to exploitation of consumer?
Monopoly
What is the difference between the term 'monopoly' and 'natural monopoly'?
The difference between the term 'monopoly' and 'natural monopoly' is a monopoly is a market situation one group controls the availability and price of a service or item. A natural monopoly is a service or item that is provided by a single sorce. An example would be transportation like buses, or taxies.
How many types of monopoly exist in the market?
There are four main types of monopoly in the market: natural monopoly, geographic monopoly, technological monopoly, and government monopoly.
Is a diamond a natural monopoly?
No.
How does the monopoly graph illustrate the concept of consumer surplus?
The monopoly graph shows the area between the demand curve and the price line, which represents consumer surplus. Consumer surplus is the difference between what consumers are willing to pay for a good or service and what they actually pay. In a monopoly, the higher price set by the monopolist reduces consumer surplus compared to a competitive market where prices are lower.
How would you classify the monopoly game as a consumer product?
A board game
What is the relationship between consumer and producer surplus in a monopoly graph?
In a monopoly graph, consumer surplus decreases while producer surplus increases compared to a competitive market. This is because the monopoly restricts output and raises prices, resulting in a transfer of surplus from consumers to producers.
How does a monopoly violate the consumer's right to choose?
by monopoly thebmanufacturers can fix any amount as price and poor consumers can't bear it.
What are the four conditions in place in a perfectly competitive market?
the economy Major of those four are the natural monopoly. geographic monopoly, govrnement monopoly. technological monopoly.
