Advertisements
Advertisements
Question
Which type of market structure is the following? Give reason.
Soft drinks
Advertisements
Solution
The market structure for soft drinks is an oligopoly.
Reason:
- A few large corporations, such as Coca-Cola and PepsiCo, dominate the soft drink sector, accounting for a sizable portion of the market.
- These companies create unique products with varied flavours, packaging styles, and branding.
- They have some control on pricing, but they must also consider their competitors' actions and strategy.
- This market structure is an oligopoly due to its great concentration and interdependence among the few leading enterprises.
APPEARS IN
RELATED QUESTIONS
Non-price competition is ______.
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’.
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 |
The seller in a monopoly market is a price maker.
Give an example of oligopoly.
Give two characteristics of perfect competition.
Why is there no need for selling cost under perfect competition?
Identify the market form from the following.
Firm is a price maker.
Identify the market form from the following.
Price discrimination
Identify the market form from the following:
A few large sellers
