Advertisements
Advertisements
Question
Why an individual firm under perfect competition cannot influence the market price?
Advertisements
Solution
A firm under perfect competition cannot influence the price as its share in the total market supply is negligible.
APPEARS IN
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
Following is not the feature of perfect competition:
Which one of the following is NOT found in a perfectly competition market?
Give an example of oligopoly.
Identify the market form for the following:
Perfectly elastic demand.
Give an example of monopoly.
What induces new firms to enter an industry?
What does perfectly elastic demand curve faced by a competitive firm indicate?
Why do producers incur high selling costs in an imperfect market?
Why are selling costs incurred?
