
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
- The problem statement never defines whether the loan had compound or simple interest. The readings indicate that the diference in those will be learned later, and the formula used fro this answer was not in the chapter. Should it be assumbed that a simple interest caluclaton should be used?arrow_forwardNot use ai pleasearrow_forwardNot use ai pleasearrow_forward
- Not use ai pleasearrow_forwardSuppose there is a new preventative treatment for a common disease. If you take the preventative treatment, it reduces the average amount of time you spend sick by 10%. The optimal combination of Z (home goods) and H (health goods). both may increase both may increase or one may stay the same while the other increases. both may decrease H may increase; Z may not change Z may increase; H may decreasearrow_forwardIn the Bismarck system,. may arise. neither selection both adverse and risk selection ☑ adverse selection risk selectionarrow_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




