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Why is it that the monopolist can control the price but cannot control the market explain?
A monopoly is when only one firm produces a given product. In the absence of any competition, they can set whatever price they desire for it, since the customer can not get the product anywhere else.
However, they can not control the market. If nobody wants to buy the product, then it does not matter how much or how little it costs, nobody will buy it anyway. Likewise, while a monopoly will never lose sales to lower-priced competition, they can price consumers out of the market by making the price so high that the customer can't afford it or won't pay for it.
What else can I help you with?
What is the impact of a monopoly on producer surplus in a market?
A monopoly typically reduces producer surplus in a market because the monopolist has the power to control prices and restrict output, leading to higher prices and lower quantities produced compared to a competitive market. This results in a transfer of surplus from consumers to the monopolist, reducing overall welfare in the market.
When a second firm enters a monopolist's market what will the initial demand curve facing the monopolist do?
shift to the left.
Why is a monopolist called a price market?
A monopolist is called a price maker because it has significant control over the price of its product due to the lack of direct competition. Unlike firms in competitive markets that are price takers, a monopolist can influence the market price by adjusting its output levels. This ability allows the monopolist to maximize profits by setting a price above marginal cost, leading to higher profits while facing a downward-sloping demand curve. Consequently, the monopolist can determine the price that consumers are willing to pay for its unique product.
How is a monopolist different from a perfectly competitive firm in terms of market structure and behavior?
A monopolist is a single seller in the market with significant control over prices, while a perfectly competitive firm is one of many sellers with no control over prices. Monopolists can set prices higher and produce less, while perfectly competitive firms must accept market prices and produce more to compete.
What is a single seller or supplier in a market called?
A single seller or supplier in a market is called a "monopolist." In a monopoly, the monopolist has significant control over the market, allowing them to set prices and dictate terms due to the lack of competition. This can lead to higher prices and reduced choices for consumers. Monopolies can arise from various factors, such as exclusive access to resources, government regulations, or technological advantages.
Explain why a monopolist must lower its quantity relative to a competitive market to maximize its profits?
A monopolist must lower its quantity relative to a competitive market to maximize its profits because the monopolist already controls and owns the largest share of the market.
Why a monopolist must lower its quantity relative to a competitive market to maximize its profits?
A monopolist has to lower its quantity relative to the competitive market to maximize profits because the monopolist is already in control of the biggest part of the market. This means that because they're already in control, to keep the market competitive they need to release the same amount of product as their competition.
What is the impact of a monopoly on producer surplus in a market?
A monopoly typically reduces producer surplus in a market because the monopolist has the power to control prices and restrict output, leading to higher prices and lower quantities produced compared to a competitive market. This results in a transfer of surplus from consumers to the monopolist, reducing overall welfare in the market.
When a second firm enters a monopolist's market what will the initial demand curve facing the monopolist do?
shift to the left.
Why is a monopolist called a price market?
A monopolist is called a price maker because it has significant control over the price of its product due to the lack of direct competition. Unlike firms in competitive markets that are price takers, a monopolist can influence the market price by adjusting its output levels. This ability allows the monopolist to maximize profits by setting a price above marginal cost, leading to higher profits while facing a downward-sloping demand curve. Consequently, the monopolist can determine the price that consumers are willing to pay for its unique product.
How is a monopolist different from a perfectly competitive firm in terms of market structure and behavior?
A monopolist is a single seller in the market with significant control over prices, while a perfectly competitive firm is one of many sellers with no control over prices. Monopolists can set prices higher and produce less, while perfectly competitive firms must accept market prices and produce more to compete.
What is A pure monopolist?
A pure monopolist is a market structure in which a single firm dominates the industry and has significant control over the market supply and pricing. This firm is the sole provider of a particular product or service, facing no competition and having the ability to set prices at higher levels without losing customers.
What is a single seller or supplier in a market called?
A single seller or supplier in a market is called a "monopolist." In a monopoly, the monopolist has significant control over the market, allowing them to set prices and dictate terms due to the lack of competition. This can lead to higher prices and reduced choices for consumers. Monopolies can arise from various factors, such as exclusive access to resources, government regulations, or technological advantages.
How much control does monopolist have over pricing?
Total control, as there is no competition the monopoly vendor can ask any price they wish. That is why monopolies are bad for society and Governments have to intervene in the capitalistic market.
Why is there no supply curve for a monopoly?
In a monopoly, there is no supply curve because the monopolist has control over the entire market supply and can set the price independently of the quantity supplied. This is different from a competitive market where multiple firms determine supply based on market forces.
Does the eventual ending of that monopoly cause the monopolist to lose all of its market power?
this is not perfect answer
What Market structure is hardest to enter?
The market structure that is hardest to enter is typically a monopoly. In a monopoly, a single firm dominates the market, often due to high barriers to entry such as significant startup costs, control over essential resources, or government regulations. These barriers prevent potential competitors from entering the market, making it challenging to challenge the monopolist's dominance. Additionally, brand loyalty and economies of scale can further entrench the monopolist's position, deterring new entrants.
