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प्रश्न
Explain the implications of the following in a perfectly competitive market:
Freedom of entry and exit to firms
Explain the implications of Given
Freedom of entry and exit of firms under perfect competition
उत्तर
Freedom of entry and exit to firms:-
New firms are free to enter and existing firms are free to exit in a perfectly competitive market. This situation is possible only in the long period because new firms will join the industry with the attraction of extra-normal profit. There will be an increase in the market supply, and hence, the price will decrease. Thereby the extra normal profit will decrease. Further, if the industry incurs extra normal loss, some existing firms will tend to leave the industry which will lead to a decline in market supply and market price. The industry will not incur extra normal loss. This is how the firms in the long run earn neither extra profit nor extra loss in the industry. Thus, firms were able to earn normal profit which prevents a firm from exiting or a new firm from entering the industry.
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संबंधित प्रश्न
There is inverse relation between price and demand for the product of a firm under:
(choose the correct alternative)
(a) Monopoly only
(b) Monopolistic competition only
(c) Both under monopoly and monopolistic competition
(d) Perfect competition only
Explain the implications of the following in a perfectly competitive market:
Large number of buyers
Explain the implications of the following in an oligopoly market: A few or a few big sellers
Average revenue and Price are always equal under:(choose the correct alternative)
(a) Perfect competition only
b) Monopolistic competition only
(c) Monopoly only
(d) All market forms
What is meant by collusive oligopoly?
Explain the significance of the feature 'product differentiation' in monopolistic competition.
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.
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.
State with reasons, whether you Agree or Disagree with the following statements.
Perfect competition is an imaginary concept.
Answer the following question
What are the features of Perfect Competition?
Answer the following question
What are the features of monopoly?
Fill in the blank with appropriate alternative given below
In ________ market, seller creates products differentiation.
Define 'or' explain the following concept.
Product Differentiation:
Observe the table and answer the question:
| Price of banana (per dozen) in ₹ | Demand (in dozen) | Supply (in dozen) | Relation between DD and SS |
| 10 | 500 | 100 | DD > SS |
| 20 | 400 | _____ | DD > SS |
| 30 | _____ | 300 | DD = SS |
| 40 | 200 | _____ | DD < SS |
| 50 | ______ | 500 | DD < SS |
Fill in the blanks in the above schedule.
In which one of the following types of markets are Average Revenue curve and Market Demand curve the same?
