Advertisements
Advertisements
Question
A seller cannot influence the market price under:
Options
Perfect competition
Monopoly
Monopolistic competition
All the above
Advertisements
Solution
Perfect competition
Explanation:
Under perfect competition, a seller cannot affect market price because there are many buyers and sellers, and each firm is a price taker. The market price is decided by the entire supply and demand in the market, and individual businesses must accept it for their goods.
RELATED QUESTIONS
Define Discriminating Monopoly.
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.
The monopolist's downward sloping demand curve means that it can increase sales only by changing a lower price.
The market structure which is characterised by a single producer of a commodity and when there are not close substitutes for that commodity:
Define perfect competition.
State two important characteristics of monopoly.
Define product differentiation.
Identify the market form for the following:
Telecom industry in India.
Discuss any four differences between monopoly and monopolistic competition.
Which type of market structure is the following? Give reason.
Scooters
Monopolistic competition is the perfect blending of monopoly and perfect competition. Explain.
Give two examples of a monopolistically competitive market.
Why can a monopolist charge different prices in different markets?
What do you mean by homogeneous products?
What induces new firms to enter an industry?
What is meant by barriers to entry?
In what respects does oligopoly differ from monopoly?
Why an individual firm under perfect competition cannot influence the market price?
In which type of market are firms interdependent and a few large firms dominate?
