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प्रश्न
Explain the main characteristics of a monopoly.
Explain three main features of monopoly.
Explain in detail the features of a monopoly.
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उत्तर
- Single seller/firm/industry: In a monopoly, there exists only one seller or a group of individuals owning a single firm.
- Price maker: Since a monopolistic firm is the only firm in the market, it has total freedom to fix the price level that can maximize its profit. Therefore, it can be said that a monopolistic firm is a price maker.
- Perfect knowledge: It is assumed that a monopolist has perfect knowledge about the different conditions prevailing in the market. He is well informed about the types of demand prevailing in different market segments and determines the price of his product accordingly.
- Price discrimination: A monopolist enjoys the freedom to engage in price discrimination. In other words, it can sell the same product to different buyers at different prices at different time periods.
- Complete control over market supply: Being a single seller, a monopolist has sole control over the production. The supply of output rests on the monopolist’s decision.
- Possibility of supernormal profits: A monopolist firm has complete control over his decisions regarding price and output. The decision is taken into consideration the profit motive. At times a higher price is charged and at times supply is restricted to earn greater profits.
- Firm is the industry: As the monopoly firm is the single firm in the market, there is no distinction between the firm and the industry.
Notes
Students should refer to the answer according to the question.
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संबंधित प्रश्न
Discuss any two features of a monopolistically competitive market.
Define Discriminating Monopoly.
When products are differentiated on the basis of advertisements, brand names etc., it is called as ______.
Non-price competition is ______.
How is Perfect competitive market is different from a monopoly market?
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:
'Homogeneous products' is a characteristic of ______.
'A few big sellers' is a characteristic of ______.
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 |
Indian Oil Corporation Limited is an example of a/an ______.
"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 ______.
Which of the following market types has the fewest number of firms?
Identify the market form for seller A on the basis of the following information:
| Units of output sold | Price offered by seller A in ₹ |
| 30 | 10 |
| 40 | 10 |
| 50 | 10 |
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:
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 |
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): 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?
Mention two features of monopoly.
Define monopolistic competition.
Define monopsony.
Give two characteristics of perfect competition.
Define product differentiation.
State the advantage of monopolistic competition over monopoly.
Highlight the importance of selling costs in a monopolistically compatible market.
Identify the market form of the following:
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Identify the market form of the following:
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Identify the market form for the following:
Railways in India.
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:
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Name the market in which there is a single buyer and many sellers.
Give an example of monopoly.
Which type of market structure is the following? Give reason.
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Which type of market structure is the following? Give reason.
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Which type of market structure is the following? Give reason.
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Product differentiation is practised in monopolistic competition? Give reasons.
Monopolistic competition is the perfect blending of monopoly and perfect competition. Explain.
What is meant by barriers to entry?
What does perfectly elastic demand curve faced by a competitive firm indicate?
In what respects does oligopoly differ from monopoly?
Identify the market form from the following.
Price discrimination
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.
Mention one feature of a monopoly market.
Name the characteristic which makes monopolistic competition different from perfect competition.
Why are selling costs incurred?
Which of the following is an example of a perfectly competitive market?
Which statement correctly describes monopsony?
