Question

When compared to the other 3 market structures, monopolists charge the highest price for their products....

When compared to the other 3 market structures, monopolists charge the highest price for their products. Explain why this statement is true or false.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The statement is true. When compared to the other 3 market structures, monopolists charge the highest price for their products. Monopoly market is characterized by a single seller selling a product having no close substitutes. Thus consumer does not have any other option left other than buying the product from the monopolist. In other markets there are other sellers and substitute products are available. This makes monopolist charge the highest price for their products as compared to other markets.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
3. Compared with perfect competitors, other things equal, imperfect competitors who cannot practice price discrimination will...
3. Compared with perfect competitors, other things equal, imperfect competitors who cannot practice price discrimination will tend to produce ____________ and charge a ______________ price. a. less lower b. less higher c. more same d. more lower e. more higher 4. Sometimes firms are able to charge different prices to different consumers. We call this “price discrimination.” Why might it be in a firm’s interest to charge some consumers a lower price than other consumers? 5. The demand for airline...
1) Price searchers can set the prices of their products. True or False: The ability to...
1) Price searchers can set the prices of their products. True or False: The ability to set price means that price searchers will always charge the highest possible price for their products. A) True B) False 2) True or False: Although price searchers can set their prices, the prices they can set are still affected by market conditions. A) True B) False Suppose firms in a competitive price-searcher market with low barriers to entry are earning an economic profit. Firms...
Explain why each of the following statements is false: 1. Market power enables a seller to...
Explain why each of the following statements is false: 1. Market power enables a seller to charge a price that is higher than their marginal cost, and this is what makes it possible for sellers with market power (such as monopolists) to earn positive profits in the long run. 2. The amount of deadweight loss associated with underproduction by monopolistically competitive firms is likely to accurately measure the true loss in social welfare resulting from this market structure (relative to...
Question 1 1) Monopolists have a 100% market share or a more than 50% market share...
Question 1 1) Monopolists have a 100% market share or a more than 50% market share ( a near monopoly in the US). Market share measures: a. the total sales of a business b. the growth of sales of a business over a year c. the sales of a business as a percentage of total sales in a market d. the profits of a business as a percentage of total profits in a market 20 points Question 2 2) In...
Does indirect exporting make the least amount of money compared to the other market entry strategies?...
Does indirect exporting make the least amount of money compared to the other market entry strategies? Explain why please..
the highest vlalue buyers always obtain the good when there is a price floor. explain what...
the highest vlalue buyers always obtain the good when there is a price floor. explain what is wrong with this statement.
اWhen oligopolists collude and act as a monopoly, they charge a price above marginal cost. When...
اWhen oligopolists collude and act as a monopoly, they charge a price above marginal cost. When they act independently, they charge a price equal to marginal cost : True or False
In a highly competitive financial market, securities are often traded below its intrinsic value in order...
In a highly competitive financial market, securities are often traded below its intrinsic value in order to encourage trading and attract liquidity. Is this statement true or false? Explain Tangency portfolio Mean-Variance dominates other portfolios on the efficient section of the investment opportunity set because it has the highest Sharpe ratio. Is this statement true or false? Explain
3. Assuming no other use of their facilities, the highest price that Schmidt should be willing...
3. Assuming no other use of their facilities, the highest price that Schmidt should be willing to pay for 10,000 units of the part is a. $210,000. b. $160,000. c. $150,000. d. $220,000. e. $140,000.
Explain briefly why receptor-mediated endocytosis is more selective when compared to other types of bulk transport?
Explain briefly why receptor-mediated endocytosis is more selective when compared to other types of bulk transport?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT