Assume That We Are Concerned About the Existence of One

question 44

Essay

Assume that we are concerned about the existence of one firm (monopoly) in a market because of the potential for economic profits. If, however, there is free entry and exit, should our concerns change? Why or why not?

---

Definitions:

Disliked Other

An individual who is viewed unfavorably or negatively by someone.

Halo Effects

A cognitive bias where an observer's overall impression of a person, brand, or product influences their feelings and thoughts about that entity's character or properties.

Social Group

A collection of individuals who interact with one another and share similar characteristics, interests, or a sense of identity.

Distributive Negotiations

A negotiation strategy that views resources as fixed and limited, with parties aiming to maximize their own share at the expense of others.