Question

this is a drag and drop question. There are lots of differences between a market served by a monopoly and a market that is perfectly competitive. Sort the items below according to whether they are associated with a single-price monopoly or perfect competition. 1. A characteristic of monopoly 2. A characteristic of Perfect (Pure) monopoly "These are the answere i have to drag into either answer 1 or answer 2" -Price is higher than in other market structure -an efficient quantity is produced -Firms can earn positive economic profit in the long run. -There are significant barriers to entry. -Firms have no market power.

Answer 1

Monopolies are characterized by higher prices, substantial barriers to entry, and the ability to sustain long-term economic profits. Perfect competition is defined by the production of an efficient quantity and the absence of market power for firms.

Step-by-step explanation:

In comparing a monopoly with perfect competition, it's crucial to understand the defining characteristics of each market structure. For a single-price monopoly, the correct attributes would be:

• Price is higher than in other market structures
• There are significant barriers to entry
• Firms can earn positive economic profit in the long run

On the other hand, in a perfectly competitive market, we would see that:

• An efficient quantity is produced
• Firms have no market power

In essence, a monopoly can set prices due to lack of competition and can sustain profits due to high barriers to entry, whereas in perfect competition, firms are price takers and produce an efficient level of output.

Answer 2

Answer: The characteristic of monopoly:

• The price is higher than in other market structures.
• Firms can earn a positive economic profit in the long run.
• There are significant barriers to entry.

The characteristic of perfect competition:

• An efficient quantity is produced.
• Firms have no market power.

Step-by-step explanation: