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Producers in a monopoly are price makers. Briefly explain.

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प्रश्न

Producers in a monopoly are price makers. Briefly explain.

Why is a monopoly firm called a price-maker?

संक्षेप में उत्तर
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उत्तर

  1. In a monopoly, manufacturers are called price makers since they have massive market power due to the lack of competition.
  2. A monopolist is the sole manufacturer of a specific product or service, meaning no close substitutes exist.
  3. 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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अध्याय 5: Meaning and Types of Markets - Exercise [पृष्ठ १३८]

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संबंधित प्रश्न

A seller cannot influence the market price under:


In monopolistic competition, there are ______.


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

Which of these feature's is found in both a perfectly competitive market and a monopolistically competitive market?


Imperfect knowledge is a characteristic feature of:


Which one of the following is NOT found in a perfectly competition market?


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

Mention two features of monopoly.


Identify the market form of the following:

Goods sold are homogeneous.


State the market form of the following commodity.

Railways 


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?


Explain any four features of perfect competition.


Which type of market structure is the following? Give reason.

Soft drinks


Elaborate the price discrimination feature of monopoly.


Identify the market form from the following.

Perfect knowledge


Why do producers incur high selling costs in an imperfect market?


Why are selling costs incurred?


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