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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
Identify the market having a single buyer and many sellers from the following:
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
What is the shape of the demand curve faced by any monopoly firm? Support your answer with a diagram.
Differentiated products is a characteristic of ______.
'A few big sellers' is a characteristic of ______.
Indian Railways is an example of ______.
Match the following and select the correct option:
| Column I | Column II | ||
| (i) | Perfect competition | (A) | Differentiated Products |
| (ii) | Monopoly | (B) | Few large firms |
| (iii) | Monopolistic Competition | (C) | Single seller |
| (iv) | Oligopoly | (D) | Homogeneous products |
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 market structure which is characterised by a single producer of a commodity and when there are not close substitutes for that commodity:
Read the following statements carefully and choose the correct alternative:
Assertion (A): Buyers are ready to pay different prices for the product produced by different firms under perfect competition.
Reason (R): The products offered for sale in the perfect market are homogeneous.
Define perfect competition.
Give three points of difference between perfect competition and monopoly.
Define monopolistic competition.
To which market is product differentiation relevant?
State the market form of the following commodity.
Fighter Aircrafts
In which form of market do producers and consumers have perfect knowledge about the market conditions?
Which type of market structure is the following? Give reason.
Trucks
Which market form has the least number of producers?
Identify the market form from the following:
A few large sellers
What is a price making firm?
