The firm and the industry are one and the same in:a)Monopolistic competitionb)Monopolyc)Duopolyd)OligopolyCorrect answer is option 'B'. Can you explain this answer?

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Answer

A type of market structure, where the firm has absolute power to produce and sell a product or service having no close substitutes. In simple terms, monopolised market is one where there is a single seller, selling a product with no near substitutes to a large number of buyers. As the firm and industry are one and the same thing in the monopoly market, so it is a single-firm industry. There is zero or negative cross elasticity of demand for a monopoly product. Monopoly can be found in public utility services such as telephone, electricity and so on.

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It is a type of of market where only one seller his selling product with no close subsitute and strong barriers to entry..

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It is that type of market in which there is a sole owner whether it is a firm or a person he sells goods and services which has no close substitute and he has full control over price and that is why in a monopoly a firm is an industryHope you will find it useful

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The Firm and the Industry in Monopoly
In a monopoly market structure, the firm and the industry are considered as one and the same. This means that there is only a single firm operating in the market, with no close substitutes or competitors. The firm has complete control over the supply and price of the product or service it offers, and there are significant barriers to entry that prevent new firms from entering the market and challenging the monopoly's position.

Characteristics of a Monopoly
A monopoly is characterized by the following key features:

1. Single Seller: In a monopoly, there is only one firm that dominates the market and controls the entire supply of a particular product or service. This firm has no direct competition.

2. No Close Substitutes: The product or service offered by the monopoly firm has no close substitutes. Consumers do not have alternative options that can fulfill their needs in the same way.

3. Price Maker: As the sole provider in the market, the monopoly firm has the power to set the price of its product or service. It can choose to charge higher prices, maximizing its profits.

4. High Barriers to Entry: Monopolies are characterized by significant barriers to entry, which prevent new firms from entering the market and competing with the existing monopoly. These barriers can include legal restrictions, high start-up costs, exclusive access to resources, or economies of scale.

5. Control over Supply: The monopoly firm has control over the supply of its product or service. It can adjust the quantity produced to maximize its profits and influence the market conditions.

Firm and Industry as One
In a monopoly, the firm and the industry are considered as one entity because there is only one firm operating in the market. The firm's decisions regarding pricing, production, and supply directly impact the market as a whole. It has complete control over the market conditions and determines the equilibrium price and quantity.

Unlike other market structures such as monopolistic competition, duopoly, or oligopoly, where there are multiple firms competing in the market, a monopoly stands alone without any direct rivals. Therefore, the firm and the industry can be seen as identical in a monopoly.

Answer

In a socialist pattern of living as envisaged in Indian context, monopoly is indeed a misnomer since even ostensible Railways Or Power are controlled by State Or Federal Government. Perhaps unlike the West, where governance and business enterprises work hand-in-glove, in the Indian context, the continuous usage  of Checks and Balances rubs out a great deal of sheen in monopoly power indulges  over pricing, supply chain and price discrimination. Antitrust laws are more pervasive in India

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