I need a full explanation for these questions 1. A monopoly may arise or be created by all of the following except a. Diseconomies of scale b. Ownership of an essential resource c. Government restrictions on entry d. Patents e. Economies of scale 2. A monopolist a. Has a perfectly inelastic demand curve. b. Is a price taker. c. Can always increase price to increase economic profit. d. Is a price maker. e. Has no control over the market price of the product it sells. 3. A price-discriminating monopolist a. Produces quality products only. b. Does not sell products to minority groups. c. Must have a very large operation. d. Sells the same product in different markets at different prices e. Has no market power in the industry 4. Firms operating in a perfectly competitive market are price takers because a. They have a lot of market power. b. They are unable to set a price that differs from the market price without losing profit. c. They choose to set a price that differs from the market price but do not lose a profit d. They choose to set a price that differs from the market price in order to gain market share. e. In a perfectly competitive market, price is dictated through various government agencies.
I need a full explanation for these questions
1. A
a. Diseconomies of scale
b. Ownership of an essential resource
c. Government restrictions on entry
d. Patents
e. Economies of scale
2. A monopolist
a. Has a perfectly
b. Is a
c. Can always increase price to increase economic profit.
d. Is a price maker.
e. Has no control over the market price of the product it sells.
3. A
a. Produces quality products only.
b. Does not sell products to minority groups.
c. Must have a very large operation.
d. Sells the same product in different markets at different prices
e. Has no market power in the industry
4. Firms operating in a
a. They have a lot of market power.
b. They are unable to set a price that differs from the market price without losing profit.
c. They choose to set a price that differs from the market price but do not lose a profit
d. They choose to set a price that differs from the market price in order to gain market share.
e. In a perfectly competitive market, price is dictated through various government agencies.
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