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Explain each of the following terms used in relation to consumerism: (i) monopoly (ii) unit pricing - Junior Cycle Home Economics - Question 10 - 2014
Question 10
Explain each of the following terms used in relation to consumerism: (i) monopoly (ii) unit pricing
Worked Solution & Example Answer:Explain each of the following terms used in relation to consumerism: (i) monopoly (ii) unit pricing - Junior Cycle Home Economics - Question 10 - 2014
Step 1
monopoly
Answer
A monopoly refers to a market structure where only one manufacturer or supplier provides a product or service. In this scenario, the monopolistic entity faces no direct competition, which can lead to higher prices and lower quality of goods or services for consumers. A monopoly may arise due to various factors including high barriers to entry, exclusive access to resources, or government regulations that restrict competition.
Step 2
unit pricing
Answer
Unit pricing is a pricing strategy where goods are priced according to a specific unit of measurement, such as per kilogram, liter, or piece. This allows consumers to make informed comparisons between products of different sizes or quantities, helping them evaluate the best value for their money. By standardizing prices based on units, consumers are empowered to make more cost-effective purchasing decisions.