Advertisements
Advertisements
Question
Following is the feature of perfect competition:
Options
Product differentiation
Homogeneous product
Barriers to entry
Less elastic
Advertisements
Solution
Homogeneous product
Explanation:
In perfect competition, all firms supply a homogeneous product, which means that the items produced by different enterprises appear identical to consumers. There is no product differentiation, and customers don't favour one company's goods over another.
RELATED QUESTIONS
Which two forms of market earn normal profit in the long run?
Identify the market having a single buyer and many sellers from the following:
Non-price competition is ______.
Match the following and select the correct option.
| Column I | Column II | ||
| (i) | Perfectly elastic demand | (A) | Oligopoly |
| (ii) | Less elastic demand | (B) | Monopolistic competition |
| (iii) | More elastic demand | (C) | Perfect competition |
| (iv) | Indeterminate demand | (D) | Monopoly |
Which of the following is the least competitive market?
Match the following:
| Column I | Column II | ||
| A. | Monopoly | (i) | Availability of close substitutes |
| B. | Oligopoly | (ii) | Absence of close substitutes |
| C. | Perfect competition | (iii) | Few large sellers |
| D. | Monopolistic competition | (iv) | Homogeneous products |
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): Buyers are ready to pay different prices for the product produced by different firms under perfect competition.
Reason (R): The products offered for sale in the perfect market are homogeneous.
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 monopsony.
What are selling costs?
In which form of market is the seller a price taker? Justify your answer.
Identify the market form for the item given below:
A single seller
Explain any four features of perfect competition.
Explain the main characteristics of a monopoly.
Give two examples of a monopolistically competitive market.
What is meant by the term ‘price taker’?
What does perfectly elastic demand curve faced by a competitive firm indicate?
Why do producers incur high selling costs in an imperfect market?
Which of the following is an example of a perfectly competitive market?
