What is no close substitute?

What is no close substitute?

“No close Substitute In pure monopolistic market structure there is no similar or close substitute of the product produced by the monopolist. It means that the buyer is compelled to purchase that good from the monopolist as he is the only manufacturer and supplier of the good.

How do you tell if a product is elastic or inelastic?

An inelastic demand is one in which the change in quantity demanded due to a change in price is small. If the formula creates an absolute value greater than 1, the demand is elastic. In other words, quantity changes faster than price. If the value is less than 1, demand is inelastic.

Are movie tickets elastic or inelastic?

The price of movie tickets is elastic but there are three different fares that depend on elastic demand. In general the price of a movie tickets is elastic and not inelastic as going to the movies is a recreational activity that is not seen as a need so the price of the tickets vary based on the individual.

What is Netflix’s market share?

Netflix’s U.S. market share has taken a hit in the last year — even as it added a company-record 36.58 million new accounts globally in 2020. Netflix’s U.S. market share has been sliced from 29% to 20% since the start of 2020; that’s a 31% drop in the last year.5 өдрийн өмнө

What is a substitute good example?

Substitute goods are two goods that can be used in place of one another, for example, Dominos and Pizza Hut. By contrast, complementary goods are those that are used with each other. The key difference is that substitute goods replace one another, whilst complementary goods add value to the other.

What is an elastic good example?

Examples of elastic goods include luxury items and certain food and beverages. Inelastic goods, meanwhile, consist of items such as tobacco and prescription drugs. The elasticity of demand is calculated by dividing the percentage change in the quantity demanded by the percentage change in the other economic variable.

What is a perfect substitute?

A perfect substitute can be used in exactly the same way as the good or service it replaces. This is where the utility of the product or service is pretty much identical. For example, a one-dollar bill is a perfect substitute for another dollar bill.

What is an example of a monopoly firm?

A monopoly is a firm who is the sole seller of its product, and where there are no close substitutes. An unregulated monopoly has market power and can influence prices. Examples: Microsoft and Windows, DeBeers and diamonds, your local natural gas company.

How successful is Netflix 2020?

Although the company’s popularity is booming around the world, the United States continues to serve as the most important market. In 2020 the number of paid Netflix subscribers in the U.S. surpassed 70 million, and more than 50 percent of U.S. based adults had a current Netflix subscription

Are fruits and vegetables elastic or inelastic?

All fruits are own-price elastic with the exception of bananas which are slightly inelastic, but not significantly so. Apples, pears, and bananas are expenditure inelastic while oranges, grapes and other fruits are expenditure elastic.

Are strawberries elastic or inelastic?

The demand for strawberries is perfectly elastic. The demand for strawberries is perfectly elastic because strawberry producers as well as most other agricultural producers are in a perfect or purely competitive market.

Is food price elastic or inelastic?

A food is said to be price inelastic—not responsive to price—when its own-price elasticity is greater than -1.0. A food is said to be price elastic—responsive to price—when its own-price elasticity is less than -1.0.

Is coffee price elastic or inelastic?

For example, if the price of a cup of coffee went up by $0.25, consumers might replace their morning caffeine fix with a cup of strong tea. This means that coffee is an elastic good because a small increase in price will cause a large decrease in demand as consumers start buying more tea instead of coffee.

Do all monopolists get a guaranteed profit?

Unlike the purely competitive firm, the pure monopolist can continue to receive economic profits in the long run. Although Monopolists likely make greater profits than they would in pure competition, they are not guaranteed a profit. Monopolies don’t operate at maximum efficiency in regard to resources and production

Are apples elastic or inelastic?

In the real world, price elasticity of demand can be closely tied to brand reputation. For example, Apple has inelastic products because changes in price have little effect on demand: shoppers will still line up outside the store for a new Apple product.

What product has no substitute?

Examples of goods without close substitutes include water and electricity | Course Hero. You can ask !

Are college textbooks elastic or inelastic?

College Textbooks Thus the demand is inelastic.

Is Netflix a perfect competition?

Netflix is a service that participates in a perfectly competitive market. Competition with Hulu, HBO Go, Amazon Prime, and Vudu prevents Netflix from maintaining a monopolistic hold of the streaming market and therefore prevents it from setting its own price.

Can a firm be a monopoly if close substitutes for its product exists?

Can a firm be a monopoly if close substitutes for its product exist? A monopoly is a firm that is the only seller of a good or service that does not have a close substitute. The firm can’t have a monopoly if a close substitute for its product exists.

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