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A perfectly competitive firm will produce more output and change a lower price than a single price monopoly firm. Do you agree or disagree with this statement?
I agree with the statement. A perfectly competitive firm operates where price equals marginal cost, leading to an efficient allocation of resources and typically resulting in a higher output at a lower price than a monopoly. In contrast, a single-price monopoly maximizes profit by producing less output and charging a higher price, leading to decreased consumer surplus and potential market inefficiencies. Thus, perfect competition generally results in greater output and lower prices compared to monopoly scenarios.
How does natural monopoly function?
A single firm supplies all the output
What is the impact of a monopoly on deadweight loss in a market?
A monopoly can lead to deadweight loss in a market because it restricts competition, allowing the monopolist to set higher prices and produce less than the efficient level of output. This results in a loss of consumer surplus and overall economic welfare.
What should a monopoly do if marginal revenue exceeds marginal cost?
increase output
What is monopoly and how price and output decisions taken under monopoly?
Monopolistic competition refers to the the exclusive possession or control of the supply or trade in a commodity or service.
A perfectly competitive firm will produce more output and change a lower price than a single price monopoly firm. Do you agree or disagree with this statement?
I agree with the statement. A perfectly competitive firm operates where price equals marginal cost, leading to an efficient allocation of resources and typically resulting in a higher output at a lower price than a monopoly. In contrast, a single-price monopoly maximizes profit by producing less output and charging a higher price, leading to decreased consumer surplus and potential market inefficiencies. Thus, perfect competition generally results in greater output and lower prices compared to monopoly scenarios.
How does natural monopoly function?
A single firm supplies all the output
What is the impact of a monopoly on deadweight loss in a market?
A monopoly can lead to deadweight loss in a market because it restricts competition, allowing the monopolist to set higher prices and produce less than the efficient level of output. This results in a loss of consumer surplus and overall economic welfare.
What are the 3 main characteristics of a function?
Each input has only one output. The same input will always produce the same output. The function can be represented by an equation or a graph.
What should a monopoly do if marginal revenue exceeds marginal cost?
increase output
What is monopoly and how price and output decisions taken under monopoly?
Monopolistic competition refers to the the exclusive possession or control of the supply or trade in a commodity or service.
What is potential output in macroeconomics?
Potential output is the capacity to produce should all factors be employed in an economy. For example, it is the output should there be no unemployment, no spare labour and no spare capital. It is unlikely that actual output will be the same as potential ouput since there is always unemployment.
What is the function rules of input and output?
The rule is what actions (operations) the function performs. The only requirement is that for each imput there is an output and that the same input always results in the same output. (Different inputs can have the same output).
AND 20013 and 222692?
The binary AND operation has two inputs and one output.The binary AND operation will always produce a 1 output if both of its inputs are 1 and will produce a 0 output if one or both of its inputs are 0.In binary20013 = 100111000101101222692 = 110110010111100100When you perform an AND on these you get17444 = 100010000100100
Is public education a natural monopoly?
Yes public education is a natural monopoly because it is a market that runs most efficiently when 1 large firm supplies all of its output.
What is the deadweight loss associated with a monopoly's market power?
The deadweight loss associated with a monopoly's market power is the loss of economic efficiency that occurs when the monopoly restricts output and raises prices, leading to a reduction in consumer surplus and overall welfare in the market.
How a monopoly firm will not achieve allocative efficiency?
They produce at a different point than a competitive firm, a monopoly produces at a point where marginal revenue= marginal cost, where a competitive firm equates price to marginal cost. The marginal cost curve is lower than the demand curve, but the monopoly charges the price at the demand curve, which is a higher price and a lower quantity than a competitive market would produce.
