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Homework answers / question archive / Markup would generally be highest under: a
Markup would generally be highest under:
a. a monopoly.
b. a cartel.
c. an oligopoly.
d. monopolistic competition.
e. a competitive market
The correct answer is a) A Monopoly
The markup would generally be highest under a monopoly. A monopolist is a one who rules the market alone and is not dependent on anyone. Hence, a monopolist firm having the highest markup has the highest probability. Firm in the perfect competition has a null probability of setting a higher mark up as there is a fear of losing customers and market share.