Market structure : Monopoly

What are the key characteristics of a monopoly?

• Large number of buyers and sellers

• Homogenous product

• Free of entry and exit into the market

• Price maker

What are the Disadvantages of Monopoly

• Reduced consumer's choice

• Higher Price

• Economies of scale

• Price stability

is basic bread consider as monopoly item ?

• YES !

• NO !

Can other companies enter a monopoly market easily?

• no

• yes

What is "price discrimination" in a monopoly?

• Price discrimination is when a monopoly charges different prices to different customers for the same product, based on factors like age or location.

• Price discrimination is when a monopoly charges same prices to different customers for the same product, based on factors like age or location.

In a Monopoly market structure, a single firm has control over

• Price and Supply

• Supply only

• Price only

Which of the following is most likely to occur in a monopoly market structure?

• Firms constantly innovate to keep up with competitors.
  

• There is limited choice for consumers, and prices tend to be higher.
  

• There is perfect competition, leading to the lowest possible prices for consumers.

A natural monopoly occurs when

• A firm gains monopoly power by producing a unique product

• A firm can supply the entire market's demand at a lower cost than multiple firms

• Government regulation forces a firm to set a fixed price

Which of the following is an example of a monopoly?

• A local farmer's market with many different vendors selling vegetables.
  

• A regional electric utility company that is the only provider of electricity in an area.
  

• C) A retail chain selling a variety of brands of clothing.

In a monopoly, the firm’s profit-maximizing output occurs where

• Marginal cost (MC) equals average total cost (ATC).
  

• Marginal cost (MC) equals marginal revenue (MR).
  

• Average total cost (ATC) is minimized.