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प्रश्न
A firm under perfect competition is a price taker but the industry is the price maker. Defend or refute this statement by giving a reason.
उत्तर
The price of the commodity is determined by the interaction of market demand and market supply. So, the market or the industry is the price-maker. However, no individual firm in this industry can influence this price because of its insignificant market share. It only has to accept the market-determined price and can sell any amount of the commodity. So firm is the price-taker. Therefore, the statement is to be defended.
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संबंधित प्रश्न
Given the meaning of market demand.
Name the factors determining market demand
Distinguish between demand by an individual consumer and market demand of a good
Market of a good is in equilibrium. If the demand for the good 'decreases'. Explain the chain of effects of this change.
Suppose there are two consumers in the market for a good and their demand functions are as follows:
d1(p) = 20 − p for any price less than or equal to 20 and d1(p) = 0 at any price greater than 20.
d2(p) = 30 − 2p for any price less than or equal to 15 and d1(p) = 0 at any price greater than 15.
Find out the market demand function.
Suppose there are 20 consumers for a good and they have identical demand functions:
D(p) = 10 − 3p for any price less than or equal to`10/3` and d1(p) = 0 at any price greater than `10/3`.
What is the market demand function?
Consider a market where there are just two consumers and suppose their demands for the good are given as follows:
Calculate the market demand for the goods.
|
p |
d1 |
d2 |
|
1 2 3 4 5 6 |
9 8 7 6 5 4 |
24 20 18 16 14 12 |
______ states that, other things being equal, quantity supplied increases with increase in price and decrease with decrease in price of a commodity.
Identify the correctly matched pair from column A to that of Column B:
| Column A | Column B | ||
| 1 | Large number of sellers and a single buyer | (a) | Monopoly Market |
| 2 | Single seller and a large number of buyers | (b) | Perfect Competition Market |
| 3 | Firms and industries are synonymous | (c) | Monopoly Market |
| 4 | No close substitutes | (d) | Perfect Competition Market |
Which of the following statements is true?
Product differentiation is a distinguishing feature of which form of the market?
