Scelta multipla
For a monopoly, the marginal revenue is below the demand curve because:
218
views
12. Monopoly
Characteristics of Monopoly
Scelta multipla
Which of the following best completes the statement: 'A pure monopoly is a price ___ engaging in non-price competition.'?
A
taker
B
discriminator
C
regulator
D
maker
Guida verificata passo dopo passo1
Understand the concept of a pure monopoly: it is a market structure where a single firm is the sole seller of a product with no close substitutes.
Recall that in a pure monopoly, the firm has significant control over the price because it is the only supplier, so it is considered a price maker rather than a price taker.
Recognize that 'price taker' refers to firms in perfectly competitive markets that accept the market price, which does not apply to monopolies.
Note that 'price discriminator' refers to a firm that charges different prices to different consumers, which is a specific pricing strategy but not the general characteristic of a pure monopoly.
Understand that 'price regulator' is not a term used to describe the monopoly's pricing power; instead, regulatory bodies may regulate monopolies, but the monopoly itself is a price maker.
Video correlati
Pratica correlata
