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Question
State two important characteristics of monopoly.
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Solution
Characteristics of monopoly are as follows:
- There is only a single firm in the market.
- No close substitutes of the product are available in the market.
- Firm is a price maker.
RELATED QUESTIONS
'A few big sellers' is a characteristic of ______.
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 |
Read the following statements carefully and choose the correct alternative:
Assertion (A): Under Perfect Competition, each firm faces a perfectly elastic demand curve.
Reason (R): Firm is a price maker under perfect competition.
Identify the market form for the item given below:
Product differentiation
In which form of market do producers and consumers have perfect knowledge about the market conditions?
What induces new firms to enter an industry?
What is the difference between perfect and imperfect oligopoly?
In what respects does oligopoly differ from monopoly?
There is inverse relation between price and demand for the product of a firm under ______.
In which market form is there a single seller and no close substitutes for the product?
