What is the difference between firm and industry under monopoly?a)There is no difference.b)A firm has control over supply, while an industry does not.c)An industry has control over supply, while a firm does not.d)A firm produces multiple products, while an industry produces a single product.Correct answer is option 'A'. Can you explain this answer?

Question

Answer

Under monopoly, there is no difference between firm and industry. The monopolist is the sole producer for a product, making the firm and the industry one and the same.

Answer

Key Difference Between Firm and Industry under Monopoly:

Firm:
- A firm refers to a single entity that produces and sells goods or services.
- In a monopoly market, a firm has control over the supply of a particular product or service.
- The firm determines the quantity of goods or services produced and sold in the market.
- The firm may have the power to set prices and restrict output to maximize profits.

Industry:
- An industry refers to a group of firms that produce similar goods or services.
- In a monopoly market, the industry as a whole does not have control over the supply of the product.
- While individual firms within the industry may have control over supply, the industry as a whole does not coordinate production.
- The industry may be dominated by a single firm or a few large firms that have significant market power.

Conclusion:
In a monopoly market, the distinction between a firm and an industry may not be as clear-cut as in competitive markets. Both the firm and the industry may have some degree of control over supply, but ultimately, they operate in a market where there is a lack of competition.

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