Advertisements
Advertisements
Question
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:
Options
Perfect competition
Monopoly
Monospony
Monopolistic competition
Advertisements
Solution
Monospony
Explanation:
This is an example of a monopsony, where there is only one buyer of labour (the resort owner) and numerous sellers of labour (local people). Because the people have few other employment options, the resort owner holds considerable authority over wages and working conditions.
APPEARS IN
RELATED QUESTIONS
A seller cannot influence the market price under:
"The price of a product under perfect competition is determined by an individual seller."
The seller in a monopoly market is a price maker.
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.
Define oligopoly.
Why is there no need for selling cost under perfect competition?
Identify the market form of the following:
Goods sold are homogeneous.
Identify the market form for the item given below:
A single seller
Which type of market structure is the following? Give reason.
Trucks
What is a price making firm?
