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प्रश्न
Producers in a monopoly are price makers. Briefly explain.
Why is a monopoly firm called a price-maker?
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उत्तर
- In a monopoly, manufacturers are called price makers since they have massive market power due to the lack of competition.
- A monopolist is the sole manufacturer of a specific product or service, meaning no close substitutes exist.
- This absence of competition allows the monopolist to establish the product's price rather than being forced to accept a market-determined price as under perfect competition.
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संबंधित प्रश्न
'A few big sellers' is a characteristic of ______.
A seller cannot influence the market price under:
"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?
The market structure which is characterised by a single producer of a commodity and when there are not close substitutes for that commodity:
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.
Define monopolistic competition.
Give an example of oligopoly.
What are selling costs?
State the advantage of monopolistic competition over monopoly.
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Market for toilet soaps in India.
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Perfectly elastic demand.
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Railways
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Ball-pen
What is meant by the term ‘price taker’?
Elaborate the price discrimination feature of monopoly.
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