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Questions
Define product differentiation.
Define the following concept.
Product Differentiation
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Solution 1
Product differentiation refers to differentiating the products on the basis of brand, size, color, shape, etc.
Solution 2
According to Chamberlin, “A General class of product is differentiated if any sufficient basis exists for distinguishing the goods of one dealer from those of another. Such a basis may be real so long as it is of importance whatsoever to buyers and leads to a preference for any variety of the product over another”.
RELATED QUESTIONS
“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
Match the following and select the correct option.
| Column I | Column II | ||
| (i) | Perfectly elastic demand | (A) | Oligopoly |
| (ii) | Less elastic demand | (B) | Monopolistic competition |
| (iii) | More elastic demand | (C) | Perfect competition |
| (iv) | Indeterminate demand | (D) | Monopoly |
Which of these feature's is found in both a perfectly competitive market and a monopolistically competitive market?
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 |
Define monopolistic competition.
Give an example of oligopoly.
Give an example of monopsony.
To which market is product differentiation relevant?
Identify the market form for the following:
Textile industry in India.
State the market form of the following commodity.
Fighter Aircrafts
Define monopoly.
Which type of market structure is the following? Give reason.
Mobile phone services
To which market is price discrimination relevant?
Which market form has the least number of producers?
There is inverse relation between price and demand for the product of a firm under ______.
There are a large number of buyers and sellers under a ______ market.
Why an individual firm under perfect competition cannot influence the market price?
Which of the following is an example of a perfectly competitive market?
