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Question
Following is not the feature of perfect competition:
Options
Very large number of buyers and sellers
Homogeneous product
Free entry or exit of firms
Selling costs
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Solution
Selling costs
Explanation:
Under perfect competition, there are no selling costs since the items are homogeneous and the same across enterprises. Firms do not need to differentiate or sell their products because they are all the same, and consumers are well-informed.
RELATED QUESTIONS
Define Discriminating Monopoly.
Non-price competition is ______.
The image above shows a departmental store of a market structure.
- Identify the form of market as observed from the above image.
- Discuss the features of this market form with respect to:
- Type of product
- Entry and exit of firms
- Selling cost
“While shopping for fruits in the local market you see many seller selling fruits”. In this context answer the following:
- What is the type of market referred to?
- State and draw the type of demand curve faced by the market above.
- Differentiate between the market indicated above and monopoly on the basis of:
- No. of sellers
- Market price
- Entry and exit of firms in the market
In monopolistic competition, there are ______.
The seller in a monopoly market is a price maker.
Match the following:
| Column I | Column II | ||
| A. | Demand curve under perfect competition | (i) | Indeterminate demand curve |
| B. | Demand curve under monopoly | (ii) | Downward sloping but less elastic |
| C. | Demand curve under monopolistic competition | (iii) | Horizontal straight line |
| D. | Demand curve under oligopoly | (iv) | Elastic demand curve |
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 perfect competition.
What is meant by pure competition?
To which market is product differentiation relevant?
State the market form of the following commodity.
Railways
In which form of market do producers and consumers have perfect knowledge about the market conditions?
Define monopoly.
Give an example of monopoly.
Discuss any four differences between monopoly and monopolistic competition.
Which type of market structure is the following? Give reason.
Ball-pen
What do you mean by homogeneous products?
Identify the market form from the following.
Firm is a price maker.
Which of the following is an example of a perfectly competitive market?
