Answer to Question #227777 in Microeconomics for Nonhlanhla

Question

1. If a firm in a perfectly competitive industry raises its price above the market price.......

2.A monopoly is.....

Answer 1

1. If a firm in a perfectly competitive market raises the price of its product above its market price, it will lose all of its sales to competitors.
2. A monopoly is a market structure in which one firm makes up the entire market. the firm faces no competitive pressure from other firms.