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प्रश्न
Answer the following question.
Elaborate three main features of a monopoly form of market.
उत्तर
The features of a monopoly form of the market are given as follows:
- Single seller/firm/industry - In a monopoly market there exist only one individual seller or a group of individuals owning a single firm. As, there is only one firm in the industry, so the firm itself is regarded as the whole industry. The sole control over the production and supply of output rests on the monopolist’s decision.
- Restricted entry of new firms - The entry into the monopolist market is restricted. In other words, no new firm can enter the monopoly market. There may be various legal barriers such as, patent rights, cartel laws, exclusive rights, etc. to restrict the entry of the new firms.
- A monopolist is a price maker - Since a monopolist firm is a single firm in the market, therefore, it enjoys full control over the price and output decisions. The monopolist has the total freedom to fix the price level, which maximises his profit. Therefore, it can be said that a monopoly firm is a price-maker.
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संबंधित प्रश्न
Explain the implications of the following in a perfectly competitive market:
Freedom of entry and exit to firms
A seller cannot influence the market price under (choose the correct alternative)
a) Perfect competition
b) Monopoly
c) Monopolistic competition
d) All of the above
Distinguish between perfect oligopoly and imperfect oligopoly. Also, explain the interdependence between the firms' feature of oligopoly.
Price discrimination is possible under monopoly.
In monopolistic completion, goods have no close substitutes.
Define monopoly.
What can you say about the number of buyers and sellers under monopolistic competition?
Fill in the blank with proper alternatives given in the bracket:
Under monopoly there is existence of ______________ .
Define or Explain :
Average revenue.
Answer in detail
What is Perfect Competition? Explain price determination under Perfect Competition.
Define or explain the following concept:
Selling cost
Give reason or explain:
Single price prevails in perfect competition.
Give reason or explain:
A monopolist can control the supply of goods.
Match the following:
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Group A
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Group B
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Monopoly
|
Public monopoly
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|
Product differentiation
|
Abnormal profit
|
|
Railway
|
Monopolistic Competition
|
|
Perfect Competition
|
Prof. Chamberlin
|
|
Pure Competition
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Homogenous product
|
|
|
Cartel
|
|
|
Selling cost
|
Define 'or' explain the following concept.
Product Differentiation:
Distinguish between perfect competition and monopolistic competition on the basis of the following:
(a) Number of sellers
(b) Nature of product
(c) Selling cost
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.
