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प्रश्न
Explain any four features of monopoly
उत्तर
A monopoly is a type of imperfect market structure. The term ‘Monopoly’ is derived from the Greek word ‘Mono’ which means ‘Single’ and ‘Poly’ which means ‘Seller’.
In a monopoly, there is only one seller who controls the entire market supply for a product that has no close substitute.
According to Chamberlin, “Monopoly refers to a single firm, which has control over the supply of a product which has no close substitute.”
The following are the features of monopoly:
1. A Single Seller: In a monopoly, there is a single producer or seller in the market, i.e., a monopolist. The monopolist faces no competition from any other producer as he is the sole seller. But, the number of buyers is large.
2. Price Maker: In a monopoly, the seller himself fixes the price. He has complete control over the supply and there is no close substitute for his product. So, he can charge any price for the product. Therefore, the monopolist is the “price maker”.
3. Entry Barrier: Entry of the rivals is restricted due to legal, natural, and technological barriers which do not allow the competitors to enter the market.
4. No Close Substitute: The product sold by the monopolist is unique. There is no close substitute available for that product in the market. So, the buyers have no choice. They either have to buy the product from the monopolist or go without it. The cross elasticity of demand for the monopolist’s product is either zero or negative.
5. Complete control over the market supply: The market is completely controlled by the monopolist. He is the only one who manufactures or sells the goods.
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संबंधित प्रश्न
Choose the correct option:
Classification of markets on the basis of place
a) Local market, National market, International market
b) Very short period market, Local market, National market.
c) Short period market, National market, International market.
d) Local market, National market, Short period market.
Choose the correct option:
Under Perfect competition, sellers are
a) Price makers
b) Price takers
c) Price discriminators
d) None of these
Give economic term:
The cost incurred by the firm to promote sales.
Find the odd word out:
Market structure on the basis of competition: Monopoly, Oligopoly, Very Short Period market, Perfect competition.
Characteristics of long period market:
- All factors of production and costs are variable.
- Firms are able to adjust all costs.
- It is for a few years, generally up to five years.
- Supply of commodity cannot be increased.
Monopoly: Price discrimination:: ______ : Product differentiation
Type of market showing some but not all the features of a competitive market –
Number of firms producing differentiated products which are closely related –
Find the odd word
Market on the basis of place -
The interaction of demand and supply to determine price of a commodity in perfect competition is ______.
Identify & explain the concept from the given illustration.
Sunrise Cosmetic Company spends on advertisements, broadcasts on radio and television as well as distributes free samples of its shampoo product to in order to increase its demand.
Distinguish Between
Short period and Long period
Distinguish Between
Monopoly and Monopolistic competition
Explain any four features of perfect competition
Explain any four features of monopolistic competition
State with reason whether you agree or disagree with the following statement:
Seller is the price maker under perfect competition.
State with reason whether you agree or disagree with the following statement:
There is product differentiation under monopolistic competition.
State with reason whether you agree or disagree with the following statement:
Selling cost is the only feature of monopolistic competition.
Study the following table, figure, passage and answer the question given below it.
| Price per unit in Rs. | Quantity demanded | Quantity supplied |
| 5 | 100 | 500 |
| 4 | ______ | 400 |
| 3 | 300 | ______ |
| 2 | ______ | 200 |
| 1 | 500 | ______ |
- Complete the table (2m)
- Derive the equilibrium price from the above table with the help of Suitable diagram. (2m)
- Mention the equilibrium point and equilibrium price in above diagram. (2m)
- Explain the concept of equilibrium price with the help of above diagram (2m)
Explain the concept of perfect competition and price determination under perfect competition
What are the features of a market?
The Spot market is classified on the basis of ______.
What is mean by Regulated Market?
What is meant by Spot Market?
What is meant by Spot Market?
What is meant by Commodity Market?
Explain the types of the market on the basis of time.
How the market can be classified?
How the market can be classified on the basis of Economics?
Give economic terms:
The period in which all factors of production are variable.
Assertion and reasoning question:
- Assertion (A): With a rising price, the supply of a commodity falls.
- Reasoning(R): Seller earns more profit at a higher price.
Find the odd word out:
Classification of markets on the basis of time:
Give an economic term:
Period in which supply is fixed and so the price is determined by demand only.
Read the given passage and answer the questions:
|
In common language the term market means a specific place where buyers and sellers of a commodity meet and exchange their goods. But in Economics it is not necessarily a place but it is an arrangement through which buyers and sellers come in contact with each other directly or indirectly and exchange of goods takes place among them. Market can be classified on the basis of place, time and competition. Market on the basis of competition is perfect competition and imperfect competition. Perfect competition is an imaginary concept of market and in reality, we observe various types of imperfect competition like monopoly, duopoly, oligopoly and monopolistic competition. In practice monopolistic competition is used. In this market there are some features of perfect competition and monopoly acting together. The uniqueness of this market lies in the fact that a difference is made between cost of production and selling cost. Selling cost refers to the cost incurred by the firm to create more demand for its product and increase the volume of sale. It includes expenditure on advertisement, hoardings, window display etc. |
Questions:
- Explain the concept of Market from Economic sense.
- Write the classification of Market.
- Write your own opinion about selling cost.
