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
Define Discriminating Monopoly.
Identify the market having a single buyer and many sellers from the following:
'Homogeneous products' is a characteristic of ______.
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.
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:
Define perfect competition.
Give two characteristics of perfect competition.
Which type of market structure is the following? Give reason.
Scooters
Which type of market structure is the following? Give reason.
Lipstick
Which type of market structure is the following? Give reason.
Ball-pen
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.
What is meant by the term ‘price taker’?
What is the effect on price when a monopoly firm tries to sell more?
Identify the market form from the following.
Firm is a price maker.
There are a large number of buyers and sellers under a ______ market.
Name the characteristic which makes monopolistic competition different from perfect competition.
Which statement correctly describes monopsony?
