What makes monopoly inefficient?
What is an indication of economic inefficiency?
What is the main economic problem with monopolies?
What do economists mean when they call monopolies inefficient?
What is an example of economic inefficiency?
What are the main causes of inefficiency in most firms?
- Monopoly Power. A monopoly faces little or no competition. …
- State Control. A nationalised firm owned by the government may face little or no incentive to try and make a profit. …
- Principal-agent problem. Shareholders may wish to maximise profits and minimise costs. …
- Lack of motivation.
What is economic monopoly?
What is productive inefficiency How is it a market failure?
Which is a major criticism of a monopoly as a source of allocative inefficiency?
Which of these features is not suited to monopoly?
Free entry and exit are not characteristics of a monopoly.
What are the 4 types of monopoly?
- Natural monopoly. A market situation where it is most efficient for one business to make the product.
- Geographic monopoly. Monopoly because of location (absence of other sellers).
- Technological monopoly. …
- Government monopoly.
Which type of monopoly rarely find in reality?
Consumers do not have any alternative and must pay the price set by the seller. Monopolies are extremely undesirable. Here the consumer loose all their power and market forces become irrelevant. However, a pure monopoly is very rare in reality.