Advertisements
Advertisements
Question
Which type of market structure is the following? Give reason.
Lipstick
Advertisements
Solution
The market structure for lipstick is monopolistic competition.
Reason:
Many suppliers in the lipstick market provide similar items that differ in terms of brand, colour variety, quality, packaging, and price. Maybelline, L'Oréal, MAC, and Revlon compete by differentiating their products through marketing, packaging, and distinct characteristics. This variety and competition among multiple enterprises with varied products are hallmarks of monopolistic competition.
APPEARS IN
RELATED QUESTIONS
In which type of market price discrimination is practiced? Explain with an example.
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’.
Firm A hires the services of Rohit Sharma to act as the Brand ambassador for its products X. Identify the nature of market for commodity X.
“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
There is no difference between perfect competition and pure competition.
Observe the relationship of the first pair of words and complete the second pair.
Single seller in the market : Monopoly
Single buyer in the market : ______
The seller in a monopoly market is a price maker.
Pick the option which does not belong to the group.
Give an example of monopoly.
What is the effect on price when a monopoly firm tries to sell more?
