EDU501 MIDTERM PAST PAPERS
A monopolist can create supernormal gains even in a long run since there is no simple passage for different firms on account of amazing rivalry. In this manner, a monopolist can keep up with excessive costs even over the long haul. HOW Could A MONOPOLIST RETAIN ITS MONOPOLY? I.
Normal restraining infrastructure encounters economies of scale as its activity turns out to be increasingly big and thusly it is financially savvy for just a single firm creating for the whole economy, as opposed to at least two firms. iv. Item separation or brand dedication.
Dynamic valuing techniques (limit estimating: charging a cost under a possible contestant’s AC to drive him out or deter him from entering). vi. The “danger of takeover” by the monopolist in some cases keeps different firms from entering. vii. The monopolist controls the stock of key variables of creation.
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The monopolist creates an item, which no other person can mimic, for example, is safeguarded by licenses or copyrights. LIMIT PRICING If a firm is now settled on the lookout, it got bit by bit the business stunts of how to maintain the business. Another participant firm in the market needs to confront significant expenses. EDU501 MIDTERM PAST PAPERS
A monopolist firm is familiar with this reality very well that his expenses are lower than the new participant firm so he can exploit what is happening. These can be because of “regular” reasons or “dynamic strategies” sought after by the monopolist. ii. Enormous starting fixed expenses might be involved, which makes it restrictive for others to enter. EDU501 MIDTERM PAST PAPERS
A monopolist can create supernormal gains even in the long run since there is no simple passage for different firms on account of amazing rivalry. In this manner, a monopolist can keep up with excessive costs even over the long haul. HOW Could A MONOPOLIST RETAIN ITS MONOPOLY? I.
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