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
Which two forms of market earn normal profit in the long run?
What is the shape of the demand curve faced by any monopoly firm? Support your answer with a diagram.
There is no difference between perfect competition and pure competition.
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.
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.
Define product differentiation.
Identify the market form of the following:
Motor car market in India.
Identify the market form for the following:
Railways in India.
Identify the market form for the item given below:
A single buyer
Mention one feature of a monopoly market.
