Advertisements
Advertisements
Question
What is the difference between perfect and imperfect oligopoly?
Advertisements
Solution
| S. No. | Feature | Perfect Oligopoly | Imperfect Oligopoly |
| 1. | Product Differentiation | Products are homogeneous (identical). | Products are differentiated (varied in some way). |
| 2. | Competition | Firms compete primarily on price. | Firms compete on both price and non-price factors (e.g., branding, features). |
| 3. | Examples | Markets for basic commodities like steel, cement. | Markets for cars, electronics, and branded goods. |
RELATED QUESTIONS
How is Perfect competitive market is different from a monopoly market?
Justify the following statement with any two valid arguments. 'In a perfect competition market structure, an individual firm does not have any role in determining price’.
“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
A seller cannot influence the market price under:
Which of these feature's is found in both a perfectly competitive market and a monopolistically competitive market?
Pick the option which does not belong to the group.
Which of the following statements are true?
- Monopolistically competitive markets have high selling costs.
- Monopolistically competitive markets sell homogeneous goods.
- Any firm can start a business in 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.
The market structure which is characterised by a single producer of a commodity and when there are not close substitutes for that commodity:
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.
State the market form of the following commodity.
Shampoos
Explain the main characteristics of a monopoly.
Which type of market structure is the following? Give reason.
Jeans
Which type of market structure is the following? Give reason.
Lipstick
Product differentiation is practised in monopolistic competition? Give reasons.
Monopolistic competition is the perfect blending of monopoly and perfect competition. Explain.
To which market is price discrimination relevant?
Why can a monopolist charge different prices in different markets?
What does perfectly elastic demand curve faced by a competitive firm indicate?
Identify the market form from the following:
A few large sellers
