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Question
Which of these feature's is found in both a perfectly competitive market and a monopolistically competitive market?
Options
No restriction on entry and exit
Imperfect knowledge
Homogeneous goods
Presence of selling costs
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Solution
No restriction on entry and exit
Explanation:
Firms can enter and quit both perfectly competitive and monopolistically competitive markets without constraint. This means that new firms can freely enter the market and established firms can quit without significant challenges, ensuring that both types of marketplaces remain competitive.
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RELATED QUESTIONS
Following is the feature of perfect competition:
In monopolistic competition, there are ______.
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 |
Which among the following is a feature of monopsony market?
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 |
Give an example of oligopoly.
Why is there no need for selling cost under perfect competition?
Identify the market form for the item given below:
Homogeneous goods
Identify the market form for the item given below:
Product differentiation
Name the characteristic which makes monopolistic competition different from perfect competition.
