Advertisements
Advertisements
Question
Why do producers incur high selling costs in an imperfect market?
Advertisements
Solution
Because of the presence of rivalry in an imperfect market, producers incur high selling costs; they wish to get an advantage over the others by incurring selling charges or sales promotion expenses.
APPEARS IN
RELATED QUESTIONS
In which type of market price discrimination is practiced? Explain with an example.
Following is the feature of perfect competition:
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 |
Pick the option which does not belong to the group.
Match the following:
| Column I | Column II | ||
| A. | Demand curve under perfect competition | (i) | Indeterminate demand curve |
| B. | Demand curve under monopoly | (ii) | Downward sloping but less elastic |
| C. | Demand curve under monopolistic competition | (iii) | Horizontal straight line |
| D. | Demand curve under oligopoly | (iv) | Elastic demand curve |
Define monopolistic competition.
Why is there no need for selling cost under perfect competition?
Identify the market form of the following:
Market for toilet soaps in India.
Identify the market form from the following.
Perfect knowledge
In which type of market are firms interdependent and a few large firms dominate?
