Advertisements
Advertisements
प्रश्न
Explain the main characteristics of a monopoly.
Explain three main features of monopoly.
Explain in detail the features of a monopoly.
Advertisements
उत्तर
- Single seller/firm/industry: In a monopoly, there exists only one seller or a group of individuals owning a single firm.
- Price maker: Since a monopolistic firm is the only firm in the market, it has total freedom to fix the price level that can maximize its profit. Therefore, it can be said that a monopolistic firm is a price maker.
- Perfect knowledge: It is assumed that a monopolist has perfect knowledge about the different conditions prevailing in the market. He is well informed about the types of demand prevailing in different market segments and determines the price of his product accordingly.
- Price discrimination: A monopolist enjoys the freedom to engage in price discrimination. In other words, it can sell the same product to different buyers at different prices at different time periods.
- Complete control over market supply: Being a single seller, a monopolist has sole control over the production. The supply of output rests on the monopolist’s decision.
- Possibility of supernormal profits: A monopolist firm has complete control over his decisions regarding price and output. The decision is taken into consideration the profit motive. At times a higher price is charged and at times supply is restricted to earn greater profits.
- Firm is the industry: As the monopoly firm is the single firm in the market, there is no distinction between the firm and the industry.
Notes
Students should refer to the answer according to the question.
APPEARS IN
संबंधित प्रश्न
Identify the market having a single buyer and many sellers from the following:
Non-price competition is ______.
In which type of market price discrimination is practiced? Explain with an example.
The image above shows a departmental store of a market structure.
- Identify the form of market as observed from the above image.
- Discuss the features of this market form with respect to:
- Type of product
- Entry and exit of firms
- Selling cost
Explain three features of Perfect competitive market.
“While shopping for fruits in the local market you see many seller selling fruits”. In this context answer the following:
- What is the type of market referred to?
- State and draw the type of demand curve faced by the market above.
- Differentiate between the market indicated above and monopoly on the basis of:
- No. of sellers
- Market price
- Entry and exit of firms in the market
'Homogeneous products' is a characteristic of ______.
Match the following and select the correct option.
| Column I | Column II | ||
| (i) | Perfectly elastic demand | (A) | Oligopoly |
| (ii) | Less elastic demand | (B) | Monopolistic competition |
| (iii) | More elastic demand | (C) | Perfect competition |
| (iv) | Indeterminate demand | (D) | Monopoly |
"The price of a product under perfect competition is determined by an individual seller."
A market where homogeneous products are sold with no control over price by an individual firm or a buyer is ______.
Which among the following is a feature of monopsony market?
Which of the following statements are true?
- Monopolistically competitive markets have high selling costs.
- Monopolistically competitive markets sell homogeneous goods.
- Any firm can start a business in a monopolistically competitive market.
The monopolist's downward sloping demand curve means that it can increase sales only by changing a lower price.
Read the given statements carefully and select the correct option.
- The number of sellers under oligopoly are small.
- In monopolistically competitive markets, buyers and sellers have perfect knowledge about the market conditions.
Which of the following market types has the fewest number of firms?
Which one of the following is NOT found in a perfectly competition market?
A holiday resort in a remote village is very popular among the tourists. Since the connectivity is very poor with the outer world, the owner employs the local villagers for the functioning of the resort.
This is a case of:
Match the following:
| Column I | Column II | ||
| A. | Monopoly | (i) | Availability of close substitutes |
| B. | Oligopoly | (ii) | Absence of close substitutes |
| C. | Perfect competition | (iii) | Few large sellers |
| D. | Monopolistic competition | (iv) | Homogeneous products |
Read the following statements carefully and choose the correct alternative:
Assertion (A): Under Perfect Competition, each firm faces a perfectly elastic demand curve.
Reason (R): Firm is a price maker under perfect competition.
Define perfect competition.
Mention two features of monopoly.
Producers in a monopoly are price makers. Briefly explain.
There are no substitute goods in a monopoly market. Give a reason to support your answer.
Define monopolistic competition.
Give an example of oligopoly.
Define monopsony.
Define product differentiation.
To which market is product differentiation relevant?
State the advantage of monopolistic competition over monopoly.
Highlight the importance of selling costs in a monopolistically compatible market.
Identify the market form of the following:
The Government of India is the sole buyer of fighter aircrafts.
Identify the market form of the following:
Motor car market in India.
Identify the market form of the following:
Market for toilet soaps in India.
Identify the market form for the following:
Railways in India.
Identify the market form for the following:
Textile industry in India.
Identify the market form for the following:
Perfectly elastic demand.
Identify the market form for the following:
Telecom industry in India.
Identify the market form for the item given below:
A single buyer
In which form of market do producers and consumers have perfect knowledge about the market conditions?
Define monopoly.
Explain any four features of perfect competition.
Discuss any four differences between monopoly and monopolistic competition.
Give two examples of a monopolistically competitive market.
Why can a monopolist charge different prices in different markets?
To which market form are homogeneous products relevant?
What induces new firms to enter an industry?
What is meant by barriers to entry?
What is the difference between perfect and imperfect oligopoly?
There is inverse relation between price and demand for the product of a firm under ______.
Name the characteristic which makes monopolistic competition different from perfect competition.
What is a price making firm?
Which of the following is an example of a perfectly competitive market?
Which feature best distinguishes monopolistic competition from perfect competition?
Which statement correctly describes monopsony?
