Question

Why do monopoly emerge? Do you agree that the monopolist is not free to determine both price and quantities to be sold as per his whims and fancy? Give reasons.​

Answer 1

Monopolies emerge when organisations come up with unique products and services, which becomes popular in the market. In case of patents and other laws, it becomes almost impossible for other companies to offer such products or services.

In such a situation, the monopolist is able to determine the price and quantities sold, according to their wish.

The MRTP (Monopolies and Restrictive Trade Practices) Act of 1969 was introduced in India, to restrict this kind of power in the hands of a few organisations.

Answer 2

Monopoly are price setters and dominate the market with single supplier.

Explanation:

• A monopoly emerges due to the single seller and many buyers. Barriers to entry into the market and the reason for their existence are ownership of resources, government franchises, intellectual property rights.  

• A monopolist is free to determine the price in the market as they dominate the sales of the products and are called price makers. This discrimination in prices and the quality of products is seen.

• They offer goods that have no substitutes which make the demands for the goods highly inelastic. This enabled them to have a positive profit. They have control over natural resources.

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• brainly.in/question/8665179 answered by sahana61.