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प्रश्न
There are no substitute goods in a monopoly market. Give a reason to support your answer.
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उत्तर १
- In a monopoly market, there are no substitute goods because the monopolist is the sole producer or provider of a unique product or service that no other firm offers.
- This absence of close substitutes means that consumers cannot switch to an alternative product if they find the monopolist's product too expensive or unsatisfactory.
- The monopolist's product is the only available option in the market, giving the monopolist significant control over pricing and market conditions.
- A monopoly's lack of competition from substitute goods is a defining feature, reinforcing the firm's dominant position in the market.
उत्तर २
The government may issue a license to a single producer to produce a specific commodity. As a result, a monopoly emerges. In addition, the government may elect to control the manufacture of specific items exclusively through departmental undertakings, such as India's railways. As a result, there are no close substitutes for the monopolistic product in the market. For example, there is no comparable 'bulk carrier' to railways.
संबंधित प्रश्न
Which two forms of market earn normal profit in the long run?
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
Justify the following statement with any two valid arguments. 'In a perfect competition market structure, an individual firm does not have any role in determining price’.
Selling costs are absent in perfect competition 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
A seller cannot influence the market price under:
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 |
Read the following statements carefully and choose the correct alternative:
Assertion (A): Price discrimination is possible under monopoly.
Reason (R): A monopolist can charge different prices in different markets because different sets of consumers - rich and poor - have different price elasticity of demand for the monopolist's product.
Define perfect competition.
Mention two features of monopoly.
State two important characteristics of monopoly.
Define product differentiation.
Identify the market form for the following:
Railways in India.
State the market form of the following commodity.
Shampoos
Define monopoly.
Give an example of monopoly.
Explain any four features of perfect competition.
Name the characteristic which makes monopolistic competition different from perfect competition.
