(a) State and explain four (4) conditions that must be in place for a monopoly to exist. (b) How does the assumptions of perfect competition explain the fact that all sellers in perfect competition are price takers?

(a) State and explain four (4) conditions that must be in place for a monopoly to exist. (b) How does the assumptions of perfect competition explain the fact that all sellers in perfect competition are price takers?

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter9: Monopoly

Section: Chapter Questions

Problem 5.6P

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. (a) State and explain four (4) conditions that must be in place for a monopoly to exist.
(b) How does the assumptions of perfect competition explain the fact that all sellers in
perfect competition are price takers?
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