Advertisements
Advertisements
प्रश्न
Discuss any two features of a monopolistically competitive market.
Give two characteristics of monopolistic competition.
State two features of monopolistic competition.
Explain three important features of monopolistic competition.
Describe the main features of monopolistic competition.
Explain two important features of monopolistically competitive market.
Advertisements
उत्तर
The following are the features of monopolistic competition:
- Large Number of Buyers and Sellers: A monopolistically competitive industry contains a large number of firms, each of which is relatively small compared to the overall size of the market. This ensures that all firms are relatively competitive. In particular, each firm has hundreds or even thousands of potential competitors.
- Non-Price Competition: Another important feature of monopolistic competition is the non-price competition. All the firms try to capture the market through various methods of competition other than price cutting. These methods may be the guarantee of free repairs, after-sale service, gift scheme with a particular purchase, special discount on a particular purchase, etc.
- Firms produce differentiated products: Products sold by different sellers are closely differentiated from each other. It may be on account of different brand names, packing, shape, the friendly behaviour of the seller or any other consideration.
- Freedom of entry and exit to firms: There is freedom of the firms to enter into the industry or leave the industry.
Notes
Students should refer to the answer according to their questions.
APPEARS IN
संबंधित प्रश्न
Following is not the feature of perfect competition:
A monopolist is price maker:
"The price of a product under perfect competition is determined by an individual seller."
Which of the following statements are true?
- Monopolistically competitive markets have high selling costs.
- Monopolistically competitive markets sell homogeneous goods.
- Any firm can start a business in a monopolistically competitive market.
Read the following statements carefully and choose the correct alternative:
Assertion (A): Under Perfect Competition, each firm faces a perfectly elastic demand curve.
Reason (R): Firm is a price maker under perfect competition.
What is meant by pure competition?
Give an example of oligopoly.
Give two characteristics of perfect competition.
State the advantage of monopolistic competition over monopoly.
Identify the market form for the item given below:
A single seller
Identify the market form for the item given below:
Homogeneous goods
Which type of market structure is the following? Give reason.
Trucks
Which type of market structure is the following? Give reason.
Lipstick
To which market is price discrimination relevant?
What is the effect on price when a perfectly competitive firm tries to sell more?
What is the effect on price when a monopoly firm tries to sell more?
Elaborate the price discrimination feature of monopoly.
Identify the market form from the following.
Price discrimination
Identify the market form from the following.
Perfect knowledge
Identify the market form from the following:
A few large sellers
