1 what determines the difference between one market structure and another?

2 Why is perfect competition not found in real markets?

3 How does a monopoly control the price of its product?

4 name three ways in which a monopoly differs from perfect competition?

5 why is product differentiation necessary for monopolistic competition?

6 why are firms in a oligopoly less independent in setting prices then firms in monopolistic competition?

7 what factors does the government consider in deciding whether to approve a merge?

8 Why do economists generally favor deregulation of most industries?

Question

Izzy

Business

2 April, 22:41

1 what determines the difference between one market structure and another?

2 Why is perfect competition not found in real markets?

3 How does a monopoly control the price of its product?

4 name three ways in which a monopoly differs from perfect competition?

5 why is product differentiation necessary for monopolistic competition?

6 why are firms in a oligopoly less independent in setting prices then firms in monopolistic competition?

7 what factors does the government consider in deciding whether to approve a merge?

8 Why do economists generally favor deregulation of most industries?

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Answers (1)

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Sandra Frye · Answer 1

1. The number of consumers and sellers, the type of products, barriers to entry and exit of the market.

2. It does not have all characteristics of perfect competition. This is called imperfect competition.

3. If there are no competitors, the seller controls the price.

4. It is restricted, there is one seller, the monopoly controls prices.

5. They must find way to attract more buyers.

6. Because they have large share of the market and there are less sellers.

7. One factor is the market share of the firms before and after the merger.

8. They are harming profits.