defining Tbemany suers, identical products, and easy entry characteristics of a
ID: 1111615 • Letter: D
Question
defining Tbemany suers, identical products, and easy entry characteristics of a monopoly market are: suppliers, u suppliers, Identical products, a many supplier, product with close substitutes, and barriers to entry single supplier, unique product, and barriers to entry. the following is not an example of a barrier to entry? Patents and copyrights Government franchises and licenses 2 Which of b. Brand awareness d. Sole ownership of key resources et comes closest to being a pure monopoly? Which market a. cell phone service b. a patented prescription drug c. the stock market d. e-readers A firm gains monopoly power when: a. barriers to entry can be erected and maintained. b other firms cannot produce an identical product but are able to produce a close substitute. it can sell all that it can produce at the price determined by market forces. it must raise price on all units in order to sell a higher level of output. c. d. A natural monopoly can: a. b. c. d. 5. supply the entire market at a higher cost than many competing firms. supply the entire market at a lower cost than many competing firms. always charge any price it wants since it faces no competition. use natural resources without being subjected to government regulations. 6. If electrical service can be more efficiently provided to a market by a single supplier than by many competing suppliers, the market is considered to be a(n): a natural monopoly b. unregulated monopoly. c. rent-seeking monopoly. d. efficient monopoly. n order to price discriminate, a monopoly firm must be able to: d. Incur a different cost for producing each unit of output. separate customers based on different elasticities of demand. charge each customer the same price. a. b. all of the above.Explanation / Answer
1.)
The characteristics of monopoly market are; that there is only a single seller and the product sold is unique, the monopolist has the power to set the price of the product. There is a barrier to entry of new firms and there is no close substitute for this product.
Hence option d is the correct answer.
2.)
Brand awareness is not the example of barriers to entry because it does not create barriers to entry.
All the given option except Brand awareness are barriers to entry.
Hence option b is the correct answer.
3.)
The characteristics of pure monopoly market are; that there is only a single seller and the product sold is unique, the monopolist has the power to set the price of the product. There is a barrier to entry of new firms and there is no close substitute for this product.
Since patented prescription drugs have all features of the pure monopoly.
Therefore option b is the correct answer.
4.)
The characteristics of pure monopoly market are; that there is only a single seller and the product sold is unique, the monopolist has the power to set the price of the product. There is a barrier to entry of new firms and there is no close substitute for this product.
Since barriers to entry can be erected and maintained stops the entry of new firms and it is a characteristic of monopoly power.
Therefore option a is the correct answer.
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