Monopoly is a market with high entry and exit barriers controlled by one firm in the industry. Monopoly is also known to be restricting its output in order to raise its price and operating on the inelastic portion of its demand curve. Furthermore, monopoly is also associated with deadweight loss. Despite the statement above, monopoly is not all BAD to society. Discuss. (Note: You may give examples to strengthen your argument)

Question 3 ( Please provide answer for 5oo words)

Industry councils promote the consumption of particular types of farm products. These groups urge us to "Drink Milk" or "Eat Apples." Very little advertising is done by individual farmers.

Using your understanding of the market structure, explain this advertising strategy.

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Despite its negative connotations monopoly isnt entirely detrimental to society While its true that monopolies can restrict output to raise prices and operate on the inelastic portion of the demand cu... View the full answer