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What are the essential points to determine in monopoly?
Points essential to determine in monopoly:
a. The importance of monopoly, where a particular monopolist is the merely producer of a good
b. How a monopolist find out its profit-maximizing output and price
c. The dissimilarity between monopoly and perfect competition, and the consequences of which difference on society’s welfare
d. Problems posed through monopoly
e. What price discrimination is, and why this is so prevalent while producers have market power
Management Decisions: An effective demand forecast assists the management to take suitable steps in factors which are relevant to decision making like plant capacity, raw-material
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Is a “perfectly competitive market” an efficient mechanism for the allocation of scarce resources? When it is, explain why. When it is not, document reasons for either inefficient
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ARGUMENTS FOR MONOPOLIES Although monopolies are usually hated mainly because their practice of consumer exploitation, there are some aspects of monopolies which are favourabl
Q. Define the Natural Monopoly? Natural Monopoly: Natural monopoly is because of natural factors. For illustration, a particular raw material is concentrated at a specific pl
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