Advertisements
Advertisements
Questions
Producers in a monopoly are price makers. Briefly explain.
Why is a monopoly firm called a price-maker?
Advertisements
Solution
- In a monopoly, manufacturers are called price makers since they have massive market power due to the lack of competition.
- A monopolist is the sole manufacturer of a specific product or service, meaning no close substitutes exist.
- This absence of competition allows the monopolist to establish the product's price rather than being forced to accept a market-determined price as under perfect competition.
APPEARS IN
RELATED QUESTIONS
Discuss any two features of a monopolistically competitive market.
Define Discriminating Monopoly.
Indian Railways is an example of ______.
The seller in a monopoly market is a price maker.
Products sold by each firm in a perfectly competitive market are perfect substitutes of each other.
Which of the following is the least competitive market?
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.
Give three points of difference between perfect competition and monopoly.
Define product differentiation.
Identify the market form of the following:
Market for toilet soaps in India.
Identify the market form for the following:
Railways in India.
State the market form of the following commodity.
Automobiles
Identify the market form for the item given below:
Homogeneous goods
Identify the market form for the item given below:
A single buyer
Name the market in which there is a single buyer and many sellers. Give an example.
In what respects does oligopoly differ from monopoly?
Identify the market form from the following.
Perfect knowledge
Why do producers incur high selling costs in an imperfect market?
Name the characteristic which makes monopolistic competition different from perfect competition.
