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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 १
- 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.
उत्तर २
- Large Number of Buyers and Sellers: Under perfect competitions, there are large number of sellers and buyers. As mentioned earlier, each seller forms a negligible part in the total market. Hence, none of them is in a position to influence the price and supply in the market. Thus, sellers are price takers under perfect competition.
The number of buyers is also large. The share of each buyer is so negligible that none of them is in a position to influence the price in the market. - Homogeneous product: An important feature of a perfectly competitive market is that the product sold is homogeneous or identical in respect of size, design, colour, taste etc. All the products are perfect substitutes to each other.
- Free entry and exit: There are no barriers to the entry and exit of firms. Any firm can enter or quit the industry at its own will. If there is hope of profit, the firm will enter the market and if there is possibility of loss the firm will leave the market.
- Single price: A single uniform price prevails under perfect competition which is determined by the interaction of demand and supply.
- Perfect knowledge of market: The buyers and sellers possess a perfect knowledge about the market conditions. Every seller and buyer has the knowledge about price, quality, source of supply of products, etc.
- Perfect mobility of factors of production: There is perfect mobility of factors of production under perfect competition. Labour and capital are mobile not only geographically but also occupationally
- Absence of transport cost: In perfect competition, the price is uniform because we assume that transport cost does not exist. This assumption will lead to uniformity in price.
- No government intervention: Laissez-faire policy is an important feature of perfect competition. It means there is absence of Government intervention in economic activities.
Notes
Students should refer to the answer according to their question and preferred marks.
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संबंधित प्रश्न
When products are differentiated on the basis of advertisements, brand names etc., it is called as ______.
Non-price competition is ______.
In which type of market price discrimination is practiced? Explain with an example.
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.
Selling costs are absent in perfect competition market.
Following is the feature of perfect competition:
Differentiated products is a characteristic of ______.
In monopolistic competition, there are ______.
Indian Railways is an example of ______.
A monopolist is price maker:
Indian Oil Corporation Limited is an example of a/an ______.
There is no difference between perfect competition and pure competition.
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 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 : ______
Pick the option which does not belong to the group.
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?
Which one of the following is NOT found in a perfectly competition market?
Products sold by each firm in a perfectly competitive market are perfect substitutes of each other.
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:
Which of the following is the least competitive market?
Match the following:
| Column I | Column II | ||
| A. | Monopoly | (i) | Availability of close substitutes |
| B. | Oligopoly | (ii) | Absence of close substitutes |
| C. | Perfect competition | (iii) | Few large sellers |
| D. | Monopolistic competition | (iv) | Homogeneous products |
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): 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?
There are no substitute goods in a monopoly market. Give a reason to support your answer.
Define oligopoly.
Give an example of oligopoly.
Define monopsony.
Give an example of monopsony.
State two important characteristics of monopoly.
Why is there no need for selling cost under perfect competition?
Highlight the importance of selling costs in a monopolistically compatible market.
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 of the following:
Market for toilet soaps in India.
Identify the market form for the following:
Railways in India.
Identify the market form for the following:
Perfectly elastic demand.
State the market form of the following commodity.
Shampoos
State the market form of the following commodity.
Fighter Aircrafts
Identify the market form for the item given below:
A single seller
Identify the market form for the item given below:
Homogeneous goods
Identify the market form for the item given below:
Product differentiation
Identify the market form for the item given below:
A single buyer
In which form of market do producers and consumers have perfect knowledge about the market conditions?
Name the market in which there is a single buyer and many sellers.
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.
Lipstick
Which type of market structure is the following? Give reason.
Soft drinks
Which type of market structure is the following? Give reason.
Ball-pen
Monopolistic competition is the perfect blending of monopoly and perfect competition. Explain.
With the help of an example explain the meaning of price discrimination.
To which market is price discrimination relevant?
Give two examples of a monopolistically competitive market.
What do you mean by homogeneous products?
What is meant by the term ‘price taker’?
What is the difference between perfect and imperfect oligopoly?
What is the difference between collusive and non-collusive oligopoly?
Name the market which has characteristics both of monopoly and perfect competition.
What does perfectly elastic demand curve faced by a competitive firm indicate?
Identify the market form from the following.
Firm is a price maker.
Identify the market form from the following.
Perfect knowledge
There is inverse relation between price and demand for the product of a firm under ______.
There are a large number of buyers and sellers under a ______ market.
Why do producers incur high selling costs in an imperfect market?
Name the characteristic which makes monopolistic competition different from perfect competition.
Why an individual firm under perfect competition cannot influence the market price?
Why are selling costs incurred?
In which market form is there a single seller and no close substitutes for the product?
In which type of market are firms interdependent and a few large firms dominate?
