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Why can't perfectly competitive firm influence industry price while a monopolistic firm can do so?
Wiki User
∙ 15y ago
The simplest answer would be: because, when you have a provider of a certain product or goods that is the only one of its kind, people have no choice but to get it from that provider. If they want to obtain that certain product, they'll have to pay whatever price that same provider stipulates, or not get it at all. If there is competition, two or more providers of the same kind, they too could all increase or decrease the price, but who wins (aka gets more clients) is the one who will have the best price (by best being lowest in a general sense). So the second provider will have to adjust the price (in general make it lower or as low) or get out of business.
Wiki User
∙ 15y ago
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Is service and quality likely to be better in an industry dominated by a monopoly or in a perfectly competitive industryWhy?
in a perfectly competitive industry
One difference between a perfectly competitive firm and a monopoly is that a perfectly competitive firm produces where?
perfectly competitive industry become a monopoly， what changes
Is banking industry monopolistic competition?
Banks are competitive. This is why they spend so much on advertising. Monopoly and competition are opposites.
Four factors influence an industry's competitive rivalry and competitive dynamics?
Market commonality, resource similarities, reputation, and incentives are four factors that influence an industry's competitive rivalry and competitive dynamics. They can have a positive or negative effect.
What business or industry is most likely to be found in a perfectly competitive market?
the adult film industry
Is service and quality likely to be better in an industry dominated by a monopoly or in a perfectly competitive industryWhy?
in a perfectly competitive industry
One difference between a perfectly competitive firm and a monopoly is that a perfectly competitive firm produces where -?
perfectly competitive industry become a monopoly， what changes
One difference between a perfectly competitive firm and a monopoly is that a perfectly competitive firm produces where?
perfectly competitive industry become a monopoly， what changes
Is banking industry monopolistic competition?
Banks are competitive. This is why they spend so much on advertising. Monopoly and competition are opposites.
Four factors influence an industry's competitive rivalry and competitive dynamics?
Market commonality, resource similarities, reputation, and incentives are four factors that influence an industry's competitive rivalry and competitive dynamics. They can have a positive or negative effect.
What business or industry is most likely to be found in a perfectly competitive market?
the adult film industry
Is peanut industry perfect competition?
No. There is no perfectly competitive market in real life.
Is the restaurant industry oligopoly?
The fast-food industry itself is an oligopolistic market, but it operates under the monopolistic competitive market of restaurants in general.
What determines the Competitive intensity in industry?
Demand and the number of competitors in an industry influence the competitive nature of a business. Another factor to competition is profit margins.
Characteristics of perfect competitive market?
A perfectly competitive market has many competitors. There is no one competitor that has more say in product prices within the industry.
Is Microsoft corporation a monopolistic industry?
No, it is not.
What will happen if an individual perfectly competitive firm charges a price above the industry equilibrium price?
If an individual in a perfectly competitive firm charges a price above the industry equilibrium price this is bad. This company will go out of business quickly because their customers will go find the lower price.
