Advertisements
Advertisements
Questions
Why is there no need for selling cost under perfect competition?
Name a market where selling cost is not required. Give a reason for your answer.
Why are selling costs not incurred in perfect competition?
Advertisements
Solution
Selling costs are not incurred in perfect competition as there exists perfect knowledge among the buyers and sellers of homogeneous products.
APPEARS IN
RELATED QUESTIONS
Which two forms of market earn normal profit in the long run?
The image above shows a departmental store of a market structure.
- Identify the form of market as observed from the above image.
- Discuss the features of this market form with respect to:
- Type of product
- Entry and exit of firms
- Selling cost
What is the shape of the demand curve faced by any monopoly firm? Support your answer with a diagram.
A seller cannot influence the market price under:
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 : ______
Which of the following market types has the fewest number of firms?
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 |
Define perfect competition.
What is meant by pure competition?
Producers in a monopoly are price makers. Briefly explain.
To which market is product differentiation relevant?
What are selling costs?
Identify the market form of the following:
Goods sold are homogeneous.
Identify the market form for the following:
Telecom industry in India.
State the market form of the following commodity.
Railways
In which form of market do producers and consumers have perfect knowledge about the market conditions?
Define monopoly.
To which market is price discrimination relevant?
What is meant by the term ‘price taker’?
Name the market which has characteristics both of monopoly and perfect competition.
