Advertisements
Advertisements
प्रश्न
Producers in a monopoly are price makers. Briefly explain.
Why is a monopoly firm called a price-maker?
Advertisements
उत्तर
- In a monopoly, manufacturers are called price makers since they have massive market power due to the lack of competition.
- A monopolist is the sole manufacturer of a specific product or service, meaning no close substitutes exist.
- This absence of competition allows the monopolist to establish the product's price rather than being forced to accept a market-determined price as under perfect competition.
APPEARS IN
संबंधित प्रश्न
What is the shape of the demand curve faced by any monopoly firm? Support your answer with a diagram.
“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:
A monopolist is price maker:
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 |
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.
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.
What is meant by pure competition?
Give three points of difference between perfect competition and monopoly.
Define product differentiation.
What are selling costs?
Highlight the importance of selling costs in a monopolistically compatible market.
Identify the market form of the following:
Goods sold are homogeneous.
State the market form of the following commodity.
Fighter Aircrafts
Name the market in which there is a single buyer and many sellers.
Which type of market structure is the following? Give reason.
Trucks
Elaborate the price discrimination feature of monopoly.
Identify the market form from the following.
Price discrimination
What is a price making firm?
