Advertisements
Advertisements
Question
The monopolist's downward sloping demand curve means that it can increase sales only by changing a lower price.
Options
True
False
Advertisements
Solution
This statement is True.
Explanation:
A monopolist faces a downward-sloping demand curve, which means in order to boost sales, the monopolist must lower the price. This is because, in a monopoly, the firm is the only source of the goods, and if it wants to sell more, it must lower the price to attract more buyers, as it cannot sell an unlimited number at a high price.
APPEARS IN
RELATED QUESTIONS
Identify the market having a single buyer and many sellers from the following:
How is Perfect competitive market is different from a monopoly market?
What is the shape of the demand curve faced by any monopoly firm? Support your answer with a diagram.
Following is the feature of perfect competition:
Match the following and select the correct option:
| Column I | Column II | ||
| (i) | Perfect competition | (A) | Differentiated Products |
| (ii) | Monopoly | (B) | Few large firms |
| (iii) | Monopolistic Competition | (C) | Single seller |
| (iv) | Oligopoly | (D) | Homogeneous products |
Identify the market form for seller A on the basis of the following information:
| Units of output sold | Price offered by seller A in ₹ |
| 30 | 10 |
| 40 | 10 |
| 50 | 10 |
Identify the market form for the following:
Railways in India.
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.
Lipstick
Identify the market form from the following.
Perfect knowledge
