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प्रश्न
Product differentiation is practised in monopolistic competition? Give reasons.
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उत्तर १
Product differentiation is a key characteristic of monopolistic competition.
Reasons:
- Many Sellers: In a monopolistic competition market, numerous sellers offer comparable but distinct products. Product differentiation enables each supplier to stand out and attract a certain group of buyers.
-
Non-Price Competition: Because products differ, businesses compete on variables other than price, such as quality, design, branding, packaging, and customer service. This helps them build client loyalty while reducing direct pricing competition.
- Consumer Preferences: Because people's interests, lives, and needs differ, businesses differentiate their products to meet those preferences. This differentiation gives consumers more options, even if the main product is identical.
- Branding and Advertising: Companies in monopolistic competition participate significantly in branding and advertising to highlight their product's unique features and establish a sense of difference in the eyes of consumers. This strengthens the concept of differentiation.
Thus, product differentiation is a critical component of monopolistic competition, allowing firms to figure out a market for themselves in a competitive marketplace.
उत्तर २
Product differentiation is the key element in monopolistic competition. Because various firms' products are similar but differentiated in brand name, shape and size, colour, quality, type of service, etc. For example, different toothpaste brands vary based on colour, taste, fluoride, packaging, etc. The goal of product differentiation is to give customers the impression that a product from one seller is different from one from another seller. Products are very similar but not identical.
संबंधित प्रश्न
Which two forms of market earn normal profit in the long run?
When products are differentiated on the basis of advertisements, brand names etc., it is called as ______.
Selling costs are absent in perfect competition market.
'A few big sellers' is a characteristic of ______.
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 |
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 |
Which among the following is a feature of monopsony market?
The monopolist's downward sloping demand curve means that it can increase sales only by changing a lower price.
Products sold by each firm in a perfectly competitive market are perfect substitutes of each other.
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 monopsony.
Highlight the importance of selling costs in a monopolistically compatible market.
Identify the market form for the item given below:
A single buyer
Give an example of price discrimination.
Which type of market structure is the following? Give reason.
Ball-pen
What is the effect on price when a perfectly competitive firm tries to sell more?
What does perfectly elastic demand curve faced by a competitive firm indicate?
