Question

Indicate the market structure, either perfect competition (P) or monopoly (M), suggested by the characteristic in the following statement. The firm finds that its demand is different from the market demand.

Indicate the market structure, either perfect competition (P) or monopoly (M), suggested by the characteristic in the following statement. The selling price of the product increases and the firm adjusts its output by moving upward along its supply curve.

Indicate the market structure, either perfect competition (P) or monopoly (M), suggested by the characteristic in the following statement. The firm sells its product at a price that is equal to its marginal revenue.  Monopoly or perfect competition?

Indicate the market structure, either perfect competition (P) or monopoly (M), suggested by the characteristic in the following statement. The firm sells its product at a price that is higher than its marginal cost.

Indicate the market structure, either perfect competition (P) or monopoly (M), suggested by the characteristic in the following statement. The firm promotes its image by making generous contributions to the local orchestra group. Perfect competition or monopoly?

Answer 1

1. Under Perfect competition ,the firm finds its demand is different from the market demand because under perfect competition ,the market demand is the sum of individual demands.

2. Under Monopoly the selling price of the product increases and the firm adjusts its output by moving along its supply curve because monopolist can adjust the output level.

3. Under Perfect competition ,the firm sells its product at a price that is equal to its marginal revenue because the firms are the price takers and it is the same for all firms.

4. Under Monopoly , the firm sells its product at a price that is higher than its marginal cost because monopolist sell the output at which the MR=MC and therefore , price >MC.

5. Under Monopoly ,the firm promotes its image by making generous contributions to the local orchestra group.