Advertisements
Advertisements
Question
"The price of a product under perfect competition is determined by an individual seller."
Options
True
False
Advertisements
Solution
This statement is False.
Explanation:
Under perfect competition, an individual seller does not determine the price of a product. Instead, the price is set by market forces such as supply and demand. Individual sellers are price takers, meaning they must accept the market price and cannot change it independently.
APPEARS IN
RELATED QUESTIONS
How is Perfect competitive market is different from a monopoly market?
Following is the feature of perfect competition:
Which among the following is a feature of monopsony market?
Match the following:
| Column I | Column II | ||
| A. | Demand curve under perfect competition | (i) | Indeterminate demand curve |
| B. | Demand curve under monopoly | (ii) | Downward sloping but less elastic |
| C. | Demand curve under monopolistic competition | (iii) | Horizontal straight line |
| D. | Demand curve under oligopoly | (iv) | Elastic demand curve |
Mention two features of monopoly.
Define monopoly.
Explain the main characteristics of a monopoly.
Which type of market structure is the following? Give reason.
Mobile phone services
Monopolistic competition is the perfect blending of monopoly and perfect competition. Explain.
Name the characteristic which makes monopolistic competition different from perfect competition.
