If a firm is the only single seller of a product?
Answer:
Thogh the firm is a monopoly seller and there is no competetion in the market, the firm is unlikely to behave monopolitistically simply because this is a contestable market without any entry barriers. Thus if the monopolist charges higher prices to get more profits or reduce quality or restrict supplies, new firms will soon enter to take away a portion of the market by offering lower price or better quality and augmenting supply. The market may not be competitive but contestable by easy new entry. Therefore the market is potentially competetive.
a monopolistically competitive market is one where there are many small sellers of the product/service and barriers to entry are low. suppose others can enter easily and it is a viable product/service, then yes the market then becomes a monopolistically competitive firm, instead of a monopoly.
if the product/service has perceived(subjective) or physical(real) differences, it's in a monopolistic market. otherwise, it's a perfect competition.
No. Since there is no significant barriers in the market then other firms can enter the market at will. The firm would behave more like a perfect competition market.
Without barriers to entry, if the firm begins to reap profits, others will enter and compete in order to reap profits of their own (and reduce profits for the single firm).
Thus, whether a firm acts monopolistically depends on the time horizon; in the short-run, before the other firms get there, probably; in the long-run, after hte other firms get there, definitely not or it will be out of business.
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