Markup would generally be highest under: a

Marketing Dec 25, 2020

Markup would generally be highest under:

a. a monopoly.

b. a cartel.

c. an oligopoly.

d. monopolistic competition.

e. a competitive market

Expert Solution

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.

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