The economist's objections to monopoly rest on the following grounds that there is a transfer of income from consumers to the monopolist and there is welfare loss as resources tend to be misallocated under monopoly.
In which of the following market structure is the degree of control over the price of its product by a firm very large?
In Monopoly market structure the degree of control over the price of its product by a firm very large. In a monopoly type of market structure, there is only one seller, so a single firm will control the entire market. It can set any price it wishes since it has all the market power. Consumers do not have any alternative and must pay the price set by the seller.
The offer curves introduced by Alfred Marshall, helps us to understand how the ___ is established in international trade.
The offer curves introduced by Alfred Marshall, helps us to understand how the terms of trade is established in international trade. An offer curve shows how the volumes traded change when the terms of change.
Demand for factors of production is derived demand. The demand for any factor of production, such as labor, physical capital or land is a derived demand because it arises not from the intrinsic utility provided by the factor but because of the value placed on the production it produces by consumers.
The producer's demand for a factor of production is governed by the ____ of the factor.