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Question
'Homogeneous products' is a characteristic of ______.
Options
Perfect competition only
Pure oligopoly only
Both Perfect competition only and Pure oligopoly only
None of the above
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Solution
'Homogeneous products' is a characteristic of perfect competition only and pure oligopoly only.
Explanation:
Perfect competition and pure oligopoly both produce homogeneous products. In perfect competition, all businesses sell the same things with no differentiation. Similarly, in a true oligopoly, the few firms in the market provide similar products, with little difference between the items offered by different enterprises.
RELATED QUESTIONS
“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
Match the following and select the correct option:
| Column I | Column II | ||
| (i) | Perfect competition | (A) | Differentiated Products |
| (ii) | Monopoly | (B) | Few large firms |
| (iii) | Monopolistic Competition | (C) | Single seller |
| (iv) | Oligopoly | (D) | Homogeneous products |
Indian Oil Corporation Limited is an example of a/an ______.
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 |
Give three points of difference between perfect competition and monopoly.
In which form of market is the seller a price taker? Justify your answer.
Identify the market form for the following:
Railways in India.
Identify the market form for the following:
Perfectly elastic demand.
State the market form of the following commodity.
Automobiles
Explain the main characteristics of a monopoly.
Which type of market structure is the following? Give reason.
Soft drinks
To which market form are homogeneous products relevant?
What induces new firms to enter an industry?
What is the effect on price when a perfectly competitive firm tries to sell more?
What is the effect on price when a monopoly firm tries to sell more?
Elaborate the price discrimination feature of monopoly.
Name the characteristic which makes monopolistic competition different from perfect competition.
Which feature best distinguishes monopolistic competition from perfect competition?
