The
Explanation of Solution
A market is a place where buyers and sellers meet and interact with each other to exchange goods and services at a mutually agreed price level. The degree of competition in the market determines the nature of the market.
A market where there is only a single seller or producer is known as the monopoly market. The complete market power and control will be with the single producer itself. The market where there are only two producers is known as the duopoly market. There will be strict restrictions in the market that prevents the entry of new firms into the market. When there are a few producers, such market is known as the oligopoly market. When there are many sellers and buyers present in the market, it is referred to as monopolistic competitive market and when the number of producers is very large and the product is homogeneous, such market is known as
Oligopoly is thus a market structure where there are some main characteristics of the monopoly as well as monopolistic competition is present. This means that the oligopoly is between the monopoly and monopolistic competition. Oligopoly is more competitive than monopoly but less competitive than the monopolistic competition. The products are slightly differentiated in monopolistic competition market and the competition amongst the players will be very high. This characteristic is present in oligopoly. The monopoly, on the other hand, has strict barriers to entry, which prevents the entrance of new firms into the market. This feature is also present in the oligopoly market. Thus, oligopoly lies in-between the monopoly and monopolistic competition.
Oligopoly lies between the monopoly and monopolistic competition. Thus, the output and price of monopoly also reflect this nature. It has a quantity that is higher than that of the monopoly and lower than the monopolistic competition. Regarding the price decision, oligopoly has a price lower than the monopoly but higher than the monopolistic competition.
Market: A market is a place where buyers and sellers interact with each other to exchange goods and services at a mutually agreed price level.
Want to see more full solutions like this?
Chapter 13 Solutions
EBK PRINCIPLES OF MICROECONOMICS (SECON
- ??!!arrow_forward. What the heck is this GDP thingy? It is Thursday afternoon, just a few days before the holiday season starts in your region, and you decided to visit your uncle Chao who owns a local delivery company. While sitting in the living room watching the evening news with your uncle, you heard the news reporter stating the following with an optimistic tone: "According to recent studies, gross domestic product (GDP) is rising due to an increase in consumer spending. The increase in spending was due to an increase in consumer confidence because the job market has shown a positive increase in both employment and income." Immediately, your uncle Chao looked at you with some confusion on his face and asked: What the heck is GDP, and why does the news dude seem excited about its increase? Does this “good” change in this GDP thingy have any effect on my delivery business? How? Do I need to do something different to prepare for the rise in GDP? How?arrow_forward3. I need people who don’t want me! As an operations manager at a factory that produces manual tools, you were tasked with preparing a new site for expansion. The plan is to start production in the new location within 6 months from the current date. The new location requires 100 workers to operate fully. The workers you need don’t require any form of education or special skills because the tasks at the factory are simple and straightforward. In other words, you typically hire lower-skilled workers. In recent years, your company has been having problems finding workers who meet those criteria because the demand for them is so high. While sitting in your office, your teammate, Alejandra, walked to your office and said, "Have you heard the recent news about the economy? They said that investment has declined, and government spending has declined too. They also said that GDP is expected to shrink in the next 6 to 10 months. I wonder what is next." Then, she looked at you and said: How…arrow_forward
- X Apex Learning Courses public activity 003002 assessment K! Kahoot! 11.3.2 Quiz: Specialization Question 5 of 10 Which term describes a business's decision to focus on producing a small number of products? A. Opportunity cost B. Specialization C. Voluntary exchange D. Self-sufficiency PREVIOUS SUBMITarrow_forwardApex Learning Apex Learning Courses leaming.com/public/activity/1003002/assessment QQuizlet K! Kahoot! 1.3.2 Quiz: Specialization Question 5 of 10 Which term describes a business's decision to focus on producing a small number of products? OO A. Opportunity cost B. Specialization C. Voluntary exchange D. Self-sufficiency PREVIOUS SUBMITarrow_forwardnot use ai pleasearrow_forward
Economics Today and Tomorrow, Student EditionEconomicsISBN:9780078747663Author:McGraw-HillPublisher:Glencoe/McGraw-Hill School Pub Co
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
