This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: What are the main differences between a monopolist and a perfectly competitive ... (Read 15 times)

soccerdreamer_17

  • Hero Member
  • *****
  • Posts: 552
on: Jun 30, 2018
What are the main differences between a monopolist and a perfectly competitive firm?

Question 2

Why is there a supply point and not a supply curve for a monopolist?
 a. A monopolist cannot affect the market price by changing its supply.
  b. A monopolist produces a homogeneous product having similar substitutes.
  c. A monopolist equates the price which it charges with its marginal cost.
  d. There is only one quantity and price at which a monopolist operates.
  e. A monopolist supplies to a large number of consumers.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

alvinum

  • Sr. Member
  • ****
  • Posts: 317
Reply #1 on: Jun 30, 2018
Answer to Question 1

A monopolist is a price maker, while a competitive firm is a price taker. A competitive firm can therefore change its output level without any impact on market price, while a change in production by a monopolist implies a change in the price of the product. This is because, being the sole producer, the market demand curve is the demand curve the monopolist perceives. A competitive firm on the other hand perceives a demand curve horizontal at the market price.

Answer to Question 2

d


soccerdreamer_17

  • Member
  • Posts: 552
Reply 2 on: Jun 30, 2018
Wow, this really help

jomama

  • Member
  • Posts: 346
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

As many as 28% of hospitalized patients requiring mechanical ventilators to help them breathe (for more than 48 hours) will develop ventilator-associated pneumonia. Current therapy involves intravenous antibiotics, but new antibiotics that can be inhaled (and more directly treat the infection) are being developed.

Did you know?

Serum cholesterol testing in adults is recommended every 1 to 5 years. People with diabetes and a family history of high cholesterol should be tested even more frequently.

Did you know?

The human body produces and destroys 15 million blood cells every second.

Did you know?

It is believed that the Incas used anesthesia. Evidence supports the theory that shamans chewed cocoa leaves and drilled holes into the heads of patients (letting evil spirits escape), spitting into the wounds they made. The mixture of cocaine, saliva, and resin numbed the site enough to allow hours of drilling.

Did you know?

The shortest mature adult human of whom there is independent evidence was Gul Mohammed in India. In 1990, he was measured in New Delhi and stood 22.5 inches tall.

Differences in the number and location of flagella. Differences in the number and location of flagella.
competitive inhibition competitive inhibition
Post–Main-Sequence Evolution of Low-Mass Stars Post–Main-Sequence Evolution of Low-Mass Stars
Plant foods such as grains and vegetables are the main sources of nonheme iron in your diet Plant foods such as grains and vegetables are the main sources of nonheme iron in your diet
Location of the main structures of the vessels Location of the main structures of the vessels
Variable and absorption costing, explaining operating-income differences. Variable and absorption costing, explaining operating-income differences.
Video: System organization - PPM system types (Somatic, Autonomic & Enteric) and Reflex arc types

For a complete list of videos, visit our video library