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Comparing a pure monopoly and a purely competitive firm with identical costs, we would find in long-run equilibrium that the pure monopolist's: O price, output, and average total cost would all be higher. a) price and average total cost would be higher, but output would be lower. b) price, output, and average total cost would all be lower. c) price and output would be lower, but average total cost would be higher.

Respuesta :

We would find in the long-run equilibrium that the pure monopolist's price and the average total cost would be higher, but the output would be lower.

Some features of pure monopolist firm include:

  • Companies are price makers in a monopolistic market because they set the prices for goods and services.
  • Prices for goods and services are typically high in this type of market because businesses enjoy complete market dominance.
  • Companies control a majority of the market, which makes entry and departure points challenging.
  • Due to the high entry barriers in monopolistic markets, even after new companies enter the market, it is frequently still dominated by one larger company.

Some features of perfectly competitive firm include:

  • Prices in a market with the perfect competition are determined by supply and demand.
  • In a market with perfect competition, all businesses take prices since no one has sufficient market control.
  • Businesses in a totally competitive market have a tiny market share in contrast to a monopolistic market.
  • Entry barriers are comparatively low, making it simple for businesses to enter and leave the market.

A totally competitive market, in contrast to a monopolistic one, contains numerous buyers and sellers as well as the option for consumers to pick where they purchase their goods and services.

Hence, We would find in the long-run equilibrium that the pure monopolist's price and the average total cost would be higher, but the output would be lower.

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Comparing a pure monopoly and a purely competitive firm with identical costs, we would find in long-run equilibrium that the pure monopolist's: Price would be higher, but output would be lower

A monopoly is a firm that is the sole seller of its product, and where there are no close substitutes. An unregulated monopoly has market power and can influence prices. Examples: Microsoft and Windows, DeBeers and diamonds, your local natural gas company.

A market structure is characterized by a single seller, selling a unique product in the market. In a monopoly market, the seller faces no competition, as he is the sole seller of goods with no close substitute.

Different types of Monopoly are there

  • Monopoly Super Mario Celebration Edition Board Game. ...
  • Monopoly Junior Game. ...
  • Monopoly Cash Grab Game. ...
  • Monopoly Pizza Board Game for Kids Ages 8 and Up. ...
  • Monopoly Super Electronic Banking Board Game For Kids Ages 8 and Up. ...
  • Monopoly Game Stranger Things Collector's Edition Board Game.

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