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प्रश्न
Explain the 'free entry and exit of firms' feature of monopolistic competition.
उत्तर
Free entry and exit of firms under monopolistic competition, firms are free to enter in or exit from the industry at any time according to their wish. This implies that there are neither abnormal profits nor any abnormal losses to a firm in the long run. But entry under monopolistic competition is not so easy and free as the situation prevails under perfect competition.
APPEARS IN
संबंधित प्रश्न
State whether the following statement is True or False
Product differentiation is the most distinguishing feature of monopolistic competition.
Explain the features of monopoly.
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:
Freedom of entry and exit to firms
State whether the following statement is true or false.
There is no product differentiation under monopolistic competition.
Distinguish between Any FOUR of the following :
Consumption expenditure and Investment expenditure.
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.
Write short note on the following:
Features of pure competition
Distinguish between the following:
Perfect competition and Pure competition
Distinguish between the following:
Natural monopoly and legal monopoly
Define or explain the following concept:
Monopolistic Competition
Give reason or explain:
Price discrimination is possible under monopoly.
Give reason or explain:
Selling cost is incurred by a firm in Monopolistic competition.
Match the following:
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Group A
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Group B
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Monopoly
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Public monopoly
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Product differentiation
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Abnormal profit
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Railway
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Monopolistic Competition
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Perfect Competition
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Prof. Chamberlin
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Pure Competition
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Homogenous product
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Cartel
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Selling cost
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Fill in the blank with appropriate alternative given below
_____________ appears in a monopoly market.
Answer the following question.
Elaborate three main features of a monopoly form of market.
PASSAGE
In India, markets for automobiles, cement, steel, aluminium, etc, are the examples of oligopolistic market. In all these markets, there are few firms for each particular product. Duopoly is a special case of oligopoly, in which there are exactly two sellers. Under duopoly, it is assumed that the product sold by the two firms is homogeneous and there is no substitute for it. Examples where two companies control a large proportion of a market are: (i) Pepsi and Coca-Cola in the soft drink market; (ii) Airbus and Boeing in the commercial large jet aircraft market.
Operating systems for smart phones and computers provide excellent examples of oligopolies in big tech. Apple iOS and Google Android dominate smart phone operating systems. Computer operating systems are overshadowed by Apple and Microsoft Windows.
- Give examples of oligopolistic market in India (1 mark)
- Explain the concept of duopoly with a suitable example from the passage (1 mark)
- Express your personal opinion based on the above information (2 marks)
