Answer to Question #77175 in Microeconomics for syed

Question

Are there any advantages to a single market seller and how do they compare to its perceived disadvantages.

Answer 1

yes, for a single seller on the market there are both disadvantages and advantages. The greatest advantage is the fact of zero elasticity on the products it produces. Since buyers do not have an alternate, they become their only choice and have profits under any circumstances. A minus of this situation is that the market does not develop, because it is not competitive, and the manufacturer is not motivated to make better products.