Advertisements
Advertisements
Questions
Discuss any two features of a monopolistically competitive market.
Give two characteristics of monopolistic competition.
State two features of monopolistic competition.
Explain three important features of monopolistic competition.
Describe the main features of monopolistic competition.
Explain two important features of monopolistically competitive market.
Advertisements
Solution
The following are the features of monopolistic competition:
- Large Number of Buyers and Sellers: A monopolistically competitive industry contains a large number of firms, each of which is relatively small compared to the overall size of the market. This ensures that all firms are relatively competitive. In particular, each firm has hundreds or even thousands of potential competitors.
- Non-Price Competition: Another important feature of monopolistic competition is the non-price competition. All the firms try to capture the market through various methods of competition other than price cutting. These methods may be the guarantee of free repairs, after-sale service, gift scheme with a particular purchase, special discount on a particular purchase, etc.
- Firms produce differentiated products: Products sold by different sellers are closely differentiated from each other. It may be on account of different brand names, packing, shape, the friendly behaviour of the seller or any other consideration.
- Freedom of entry and exit to firms: There is freedom of the firms to enter into the industry or leave the industry.
Notes
Students should refer to the answer according to their questions.
APPEARS IN
RELATED QUESTIONS
Non-price competition is ______.
Following is the feature of perfect competition:
A monopolist is price maker:
Which of these feature's is found in both a perfectly competitive market and a monopolistically competitive market?
Identify the market form for seller A on the basis of the following information:
| Units of output sold | Price offered by seller A in ₹ |
| 30 | 10 |
| 40 | 10 |
| 50 | 10 |
Products sold by each firm in a perfectly competitive market are perfect substitutes of each other.
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:
There are no substitute goods in a monopoly market. Give a reason to support your answer.
Define monopolistic competition.
State two important characteristics of monopoly.
Explain the main characteristics of a monopoly.
Which type of market structure is the following? Give reason.
Ball-pen
What is meant by barriers to entry?
What is the difference between perfect and imperfect oligopoly?
Elaborate the price discrimination feature of monopoly.
Identify the market form from the following.
Perfect knowledge
Identify the market form from the following:
A few large sellers
What is a price making firm?
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?
