Advertisements
Advertisements
Question
Name the characteristic which makes monopolistic competition different from perfect competition.
Advertisements
Solution
The goods produced by the firms under monopolistic competition are not homogeneous like in the case of perfect competition. Firms under monopolistic competition produce differentiated products.
APPEARS IN
RELATED QUESTIONS
A seller cannot influence the market price under:
Which among the following is a feature of monopsony 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 |
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 |
State the market form of the following commodity.
Shampoos
In which form of market do producers and consumers have perfect knowledge about the market conditions?
Which type of market structure is the following? Give reason.
Mobile phone services
What does perfectly elastic demand curve faced by a competitive firm indicate?
In what respects does oligopoly differ from monopoly?
Which feature best distinguishes monopolistic competition from perfect competition?
