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Question
Marginal revenue of a firm is constant throughout under:
Options
Perfect Competition
Monopolistic Competition
Oligopoly
All the above
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Solution
Perfect Competition
Explanation:
A firm's marginal revenue remains constant under perfect competition because it is a price taker. This means that the firm can sell any amount of its product at the current market price, and the additional revenue obtained from selling one more unit (marginal revenue) is constant and equal to the price.
RELATED QUESTIONS
'Homogeneous products' is a characteristic of ______.
Observe the relationship of the first pair of words and complete the second pair.
Single seller in the market : Monopoly
Single buyer in the market : ______
The market structure which is characterised by a single producer of a commodity and when there are not close substitutes for that commodity:
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:
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.
Give an example of monopsony.
Give two characteristics of perfect competition.
State the advantage of monopolistic competition over monopoly.
Identify the market form for the following:
Textile industry in India.
Identify the market form for the item given below:
A single buyer
Give an example of monopoly.
Explain any four features of perfect competition.
Which type of market structure is the following? Give reason.
Soft drinks
Which market form has the least number of producers?
What induces new firms to enter an industry?
What is the difference between collusive and non-collusive oligopoly?
What does perfectly elastic demand curve faced by a competitive firm indicate?
Identify the market form from the following:
A few large sellers
In which type of market are firms interdependent and a few large firms dominate?
