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प्रश्न
Monopolistic competition is the perfect blending of monopoly and perfect competition. Explain.
Monopolistic competition is a blend of perfect competition and monopoly. Discuss the statement by giving two reasons.
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उत्तर १
A monopolistically competitive market is a blend of both a perfectly competitive market and a monopoly market.
Features of Perfectly Competitive Market:
- Large number of firms.
- No barriers to entry or exit.
Features of Monopoly Market:
- Product differentiation refers to how each company creates a product that differs slightly from that of rivals.
- Close substitutes but no perfect substitutes.
उत्तर २
Monopolistic competition is considered a blend of perfect competition and monopoly because it shares characteristics of both market structures.
- Large Number of Sellers (Like Perfect Competition): In a market with many companies, no single company has control over the entire industry. This is close to perfect competition.
- Product Differentiation (Like Monopoly): Each firm offers a differentiated product through branding, quality, or features, allowing them to have some monopoly power in pricing.
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संबंधित प्रश्न
Discuss any two features of a monopolistically competitive market.
Define Discriminating Monopoly.
Which two forms of market earn normal profit in the long run?
Following is the feature of perfect competition:
'Homogeneous products' is a characteristic of ______.
Differentiated products is a characteristic of ______.
Indian Railways is an example of ______.
"The price of a product under perfect competition is determined by an individual seller."
Which of these feature's is found in both a perfectly competitive market and 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.
Identify the market form for seller A on the basis of the following information:
| Units of output sold | Price offered by seller A in ₹ |
| 30 | 10 |
| 40 | 10 |
| 50 | 10 |
Match the following:
| Column I | Column II | ||
| A. | Demand curve under perfect competition | (i) | Indeterminate demand curve |
| B. | Demand curve under monopoly | (ii) | Downward sloping but less elastic |
| C. | Demand curve under monopolistic competition | (iii) | Horizontal straight line |
| D. | Demand curve under oligopoly | (iv) | Elastic demand curve |
Give three points of difference between perfect competition and monopoly.
Give an example of oligopoly.
State the advantage of monopolistic competition over monopoly.
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:
Market for toilet soaps in India.
Identify the market form for the following:
Textile industry in India.
State the market form of the following commodity.
Automobiles
Define monopoly.
Explain the main characteristics of a monopoly.
Discuss any four differences between monopoly and monopolistic competition.
Which type of market structure is the following? Give reason.
Scooters
What do you mean by homogeneous products?
What is meant by barriers to entry?
In what respects does oligopoly differ from monopoly?
Identify the market form from the following.
Firm is a price maker.
Identify the market form from the following.
Price discrimination
Identify the market form from the following:
A few large sellers
There are a large number of buyers and sellers under a ______ market.
