Explain whether companies under perfect competition as well as monopoly are making profits in the long run? If yes, why? If not, why not? For what reasons would you expect a monopoly to charge (a) a higher price, and (b) a lower price than if the industry we...
Explain whether companies under perfect competition as well as monopoly are making profits in the long run? If yes, why? If not, why not? Explain why in an oligopoly market, it is hard to maintain monopoly profit. Give at least 5 reasons with the explanation. ...
What are economic profits and normal profits with regard to a monopoly? What is a natural monopoly? Explain with a graph how a regulated natural monopoly sets its price. How a profit maximizing monopoly chooses output and price: A bakery is considering whether or not to...
Show diagrammatically a monopoly firm making economic profit in the short run. Is profit likely to be eroded to zero in the long run (like in perfect competition)? Explain. Perfect competition and monopolistic competition both generate zero economic prof...
Explain (graph might be helpful) 2) Expl 1. Which of the following is a characteristic of a monopoly? a. The firm produces a product that has many close substitutes. b. There are barriers to entry in the market. c. The firm has no control ...