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
Justify the following statement with any two valid arguments. 'In a perfect competition market structure, an individual firm does not have any role in determining price’.
Selling costs are absent in perfect competition market.
In monopolistic competition, there are ______.
Which among the following is a feature of monopsony market?
Pick the option which does not belong to the group.
Which of the following statements are true?
- Monopolistically competitive markets have high selling costs.
- Monopolistically competitive markets sell homogeneous goods.
- Any firm can start a business in a monopolistically competitive market.
Products sold by each firm in a perfectly competitive market are perfect substitutes of each other.
There are no substitute goods in a monopoly market. Give a reason to support your answer.
Give three points of difference between perfect competition and monopoly.
State the advantage of monopolistic competition over monopoly.
Identify the market form of the following:
Market for toilet soaps in India.
Identify the market form for the item given below:
Homogeneous goods
Which type of market structure is the following? Give reason.
Ball-pen
Monopolistic competition is the perfect blending of monopoly and perfect competition. Explain.
Give two examples of a monopolistically competitive market.
Which market form has the least number of producers?
Identify the market form from the following.
Price discrimination
Why an individual firm under perfect competition cannot influence the market price?
