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प्रश्न
Explain any four features of perfect competition.
Explain the perfect competition’s three characteristics.
Describe any three characteristics of perfect competition.
What are the characteristics of a perfectly competitive market?
Give two characteristics of perfect competition.
Mention one feature of a perfect market.
State two features of perfect competition.
Give two features of perfect competition.
Explain one feature of perfect competition.
Explain the characteristics of perfect competition.
Give any four features of a perfectly competitive market.
Give the main features of perfect market.
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उत्तर
- Large Number of Buyers and Sellers: The market price cannot be influenced by any single buyer or seller because of the large number of participants. Each firm contributes so little to overall output that changes in supply have little effect on market price. Similarly, individual buyers cannot impact demand. As a result, each firm is a price taker.
- Homogeneous Product: All firms offer identical or completely interchangeable items. There is no difference in quality, brand, or features, and purchasers are indifferent about the seller. As a result, a uniform pricing prevails in the market because no firm can charge more than another.
- Free Entry and Exit: Firms have the freedom to enter and exit the market without any legal, financial, or technical barriers. If firms make excessive profits, more firms enter the market, increasing supply and driving down prices. Firms that incur losses exit the market, reducing supply and raising prices. This system ensures that profits remain typical in the long run.
- Perfect mobility: Land, labour, and capital can freely flow between enterprises and industries. This mobility ensures that resources are allocated efficiently by shifting them to the most productive locations. It also promotes the entry and exit of enterprises.
- Perfect Knowledge: Buyers and sellers have complete knowledge about product prices, quality, and market conditions. No business may charge more than the market price, and customers will not pay more than necessary. Firms also understand the most efficient production procedures, resulting in similar cost structures.
- Absence of Selling Cost: Assuming no transportation costs, the price is constant for all buyers, regardless of location. If transportation expenses didn’t exist, retailers closer to the buyer could charge less. This assumption contributes to a market-wide price uniformity.
Notes
Students should refer to the answer according to their question and preferred marks.
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संबंधित प्रश्न
Discuss any two features of a monopolistically competitive market.
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
Explain three features of Perfect competitive market.
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.
Firm A hires the services of Rohit Sharma to act as the Brand ambassador for its products X. Identify the nature of market for commodity X.
“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
Following is not the feature of perfect competition:
Differentiated products is a characteristic of ______.
'A few big sellers' is a characteristic of ______.
Marginal revenue of a firm is constant throughout under:
A seller cannot influence the market price under:
In monopolistic competition, there are ______.
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 |
"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 ______.
Observe the relationship of the first pair of words and complete the second pair.
Single seller in the market : Monopoly
Single buyer in the market : ______
The seller in a monopoly market is a price maker.
Which among the following is a feature of monopsony market?
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 given statements carefully and select the correct option.
- The number of sellers under oligopoly are small.
- In monopolistically competitive markets, buyers and sellers have perfect knowledge about the market conditions.
Which of the following market types has the fewest number of firms?
Products sold by each firm in a perfectly competitive market are perfect substitutes of each other.
The market structure which is characterised by a single producer of a commodity and when there are not close substitutes for that commodity:
A holiday resort in a remote village is very popular among the tourists. Since the connectivity is very poor with the outer world, the owner employs the local villagers for the functioning of the resort.
This is a case of:
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.
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.
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.
Define perfect competition.
What is meant by pure competition?
Mention two features of monopoly.
There are no substitute goods in a monopoly market. Give a reason to support your answer.
Give three points of difference between perfect competition and monopoly.
Define monopolistic competition.
Define monopsony.
Give an example of monopsony.
Give two characteristics of perfect competition.
State two important characteristics of monopoly.
To which market is product differentiation relevant?
What are selling costs?
In which form of market is the seller a price taker? Justify your answer.
Identify the market form of the following:
The Government of India is the sole buyer of fighter aircrafts.
Identify the market form of the following:
Goods sold are homogeneous.
Identify the market form of the following:
Motor car market in India.
Identify the market form for the following:
Railways in India.
Identify the market form for the following:
Textile industry in India.
Identify the market form for the following:
Perfectly elastic demand.
State the market form of the following commodity.
Automobiles
State the market form of the following commodity.
Shampoos
Define monopoly.
Give an example of monopoly.
Give an example of price discrimination.
Discuss any four differences between monopoly and monopolistic competition.
Which type of market structure is the following? Give reason.
Trucks
Which type of market structure is the following? Give reason.
Scooters
Which type of market structure is the following? Give reason.
Lipstick
Monopolistic competition is the perfect blending of monopoly and perfect competition. Explain.
To which market is price discrimination relevant?
Give two examples of a monopolistically competitive market.
Why can a monopolist charge different prices in different markets?
What do you mean by homogeneous products?
To which market form are homogeneous products relevant?
What is the effect on price when a monopoly firm tries to sell more?
What is the difference between collusive and non-collusive oligopoly?
Name the market which has characteristics both of monopoly and perfect competition.
Identify the market form from the following.
Firm is a price maker.
Identify the market form from the following:
A few large sellers
There are a large number of buyers and sellers under a ______ market.
Why do producers incur high selling costs in an imperfect market?
What is a price making firm?
Why are selling costs incurred?
In which market form is there a single seller and no close substitutes for the product?
Which feature best distinguishes monopolistic competition from perfect competition?
In which type of market are firms interdependent and a few large firms dominate?
