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प्रश्न
Answer the following question :
What are the features of monopolistic competition ?
उत्तर
a) Fairly large no. of buyers : In this market, there are fairly large number of buyers. Consequently, no single buyer can influence the price of the product by changing his individual demand.
(b) Fairly large no. of sellers : The no. of sellers in monopolistic competition is large. Each seller has a limited control over supply. The seller has complete control over his brand. Thus, they have to face competition from sellers selling close substitutes (other brands) in market .
(c) Product differentiation : Another important feature of this market is that the product produced and sold by various firms (sellers) are not identical but they are slightly different from each other on the basis of their brand name, shape, colour, packing etc. Thus, producers compete with each other on the basis of product differentiation and not on the price differentiation. Therefore, monopolistic competition is also known as no price competition.
(d) Close substitutes : Goods are close substitutes to each other, e.g, pepsi and coca cola.
(e) Selling cost : Product differentiation in monopolistic market leads to emergence of selling cost. The price of product includes the selling cost (advertisement on T. V, radio, exhibitions etc. incurred by producers to increase the sales.
(f) Free entry and exit : There is freedom of entry and exit under this competition, i.e., new firms are free to enter the market, if there is super normal profits and similarly they can leave the market, if they found it difficult for survival.
(g) Demand curve of the firm : Due to product differentiation and availability of close substitutes, demand curve of the firm is highly price elastic and downward sloping.
(h) The firm is the price maker in this market and AR curve > MR curve. AR curve and MR curve both are negatively sloped curves.
APPEARS IN
संबंधित प्रश्न
State whether the following statement is True or False
Product differentiation is the most distinguishing feature of monopolistic competition.
Features of Monopolistic Competition.
The objective of a seller in monopoly market is...............................
(loss \ profit \ negative profit \ zero profit)
The seller is a price maker in the perfect competition.
Explain the features of monopoly.
Homogenous product’ is a characteristic of : (choose the correct alternative)
(a) Perfect competition only
(b) Perfect oligopoly only
(c) Both (a) and (b)
(d) None of the above
Explain the implications of the following in an oligopoly market:
Inter- dependence between firms
Giving reason, state whether the following statement is true or false.
A Monopolist can sell any quantity he likes at a price.
Explain the implications of the following in a perfectly competitive market :
Large number of sellers
Explain the implications of the following in an oligopoly market: Barriers to entry of new firms
‘A few big sellers’ is a characteristics of : (choose the correct alternative)
a. Perfect competition
b. Monopolistic competition
c. Oligopoly
d. None of the above
Explain the implications of the following : Product differentiation in monopolistic competition.
Distinguish between perfect oligopoly and imperfect oligopoly. Also, explain the interdependence between the firms' feature of oligopoly.
Explain the significance of the feature 'product differentiation' in monopolistic competition.
Define monopoly.
What can you say about the number of buyers and sellers under monopolistic competition?
Give reason or explain the following.
Price discrimination is possbile under monopoly.
Fill in the blank with proper alternatives given in the bracket:
Under monopoly there is existence of ______________ .
State whether the following statement is true or false.
There is no product differentiation under monopolistic competition.
State whether the following statement is True or False with reason:
Perfect competition means pure competition.
Distinguish between :
Output method and Expenditure method.
Distinguish between Any FOUR of the following :
Consumption expenditure and Investment expenditure.
State with reasons, whether you Agree or Disagree with the following statements.
Perfect competition is an imaginary concept.
Give reasons or explain the following statements
There is single price in perfect competition.
Answer the following question
What are the features of monopoly?
State with reason whether you agree or disagree with the following statement
Perfect Competition means Monopolistic Competition.
State with reason whether you agree or disagree with the following statement
A seller is price maker in monopoly.
Answer in detail
What is Perfect Competition? Explain price determination under Perfect Competition.
Distinguish between the following:
Natural monopoly and legal monopoly
Distinguish between the following:
Natural monopoly and Social monopoly
Define or explain the following concept:
Monopolistic Competition
Define or explain the following concept:
Selling cost
Give reason or explain:
Price discrimination is possible under monopoly.
Give reason or explain:
Selling cost is incurred by a firm in Monopolistic competition.
State whether the following statement is TRUE and FALSE.
Product differentiation is not possible under perfect competition.
Fill in the blank with appropriate alternative given below
Under perfect competition commodities are ________________ in nature.
Fill in the blank with appropriate alternative given below
_____________ appears in a monopoly market.
Fill in the blank with appropriate alternative given below
In ________ market, seller creates products differentiation.
Answer the following question.
What is the reason for an indeterminate demand curve under Oligopoly?
In which one of the following types of markets are Average Revenue curve and Market Demand curve the same?
