Advertisements
Advertisements
Question
Products sold by each firm in a perfectly competitive market are perfect substitutes of each other.
Options
True
False
Advertisements
Solution
This statement is True.
Explanation:
In a completely competitive market, all firms sell identical items, which means they are perfect substitutes for one another. Consumers consider items from different companies as unrelated, with no differences in quality or features.
APPEARS IN
RELATED QUESTIONS
When products are differentiated on the basis of advertisements, brand names etc., it is called as ______.
Non-price competition is ______.
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’.
A monopolist is price maker:
Give three points of difference between perfect competition and monopoly.
Identify the market form of the following:
The Government of India is the sole buyer of fighter aircrafts.
Identify the market form for the item given below:
A single seller
To which market is price discrimination relevant?
To which market form are homogeneous products relevant?
Why an individual firm under perfect competition cannot influence the market price?
