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Question
What does perfectly elastic demand curve faced by a competitive firm indicate?
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Solution
A perfectly elastic demand curve faced by a competitive firm indicates that a price is given to the firm, and the firm has no control over the given price.
RELATED QUESTIONS
The image above shows a departmental store of a market structure.
- Identify the form of market as observed from the above image.
- Discuss the features of this market form with respect to:
- Type of product
- Entry and exit of firms
- Selling cost
“While shopping for fruits in the local market you see many seller selling fruits”. In this context answer the following:
- What is the type of market referred to?
- State and draw the type of demand curve faced by the market above.
- Differentiate between the market indicated above and monopoly on the basis of:
- No. of sellers
- Market price
- Entry and exit of firms in the market
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A market where homogeneous products are sold with no control over price by an individual firm or a buyer is ______.
The seller in a monopoly market is a price maker.
Read the given statements carefully and select the correct option.
- The number of sellers under oligopoly are small.
- In monopolistically competitive markets, buyers and sellers have perfect knowledge about the market conditions.
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 |
Mention two features of monopoly.
Define oligopoly.
State the advantage of monopolistic competition over monopoly.
Identify the market form for the following:
Telecom industry in India.
Which type of market structure is the following? Give reason.
Scooters
What is the effect on price when a perfectly competitive firm tries to sell more?
Identify the market form from the following.
Firm is a price maker.
Identify the market form from the following:
A few large sellers
There are a large number of buyers and sellers under a ______ market.
What is a price making firm?
In which market form is there a single seller and no close substitutes for the product?
