Advertisements
Advertisements
प्रश्न
Explain the implications of the following in an oligopoly market:
Non-price competition
Explain the implications of Non-price competition under oligopoly
उत्तर १
Non-price competition:- In an oligopoly market, firms do not compete each other with changes in the price. If the firm increases the price, rival firms may not increase it, so it will lead to a loss of the market. Consumers will shift to rival firms. On the other hand, if the firm decreases the price, the rival firms may decrease it, so it will lead to a loss of total revenue. There will not be increase in the demand for the product. They take into consideration the decisions of rival firms, and hence, the price does not move freely and it leads to non-price competition. High selling cost prevails in the market, resources are not fully used and welfare is not maximised.
उत्तर २
Non-price competition under oligopoly: Firms under oligopoly are in a position to influence the prices. However, they try to avoid price competition for the fear of price war. They follow the policy of price rigidity. Price rigidity refers to a situation in which price stay fixed irrespective of changes in demand and supply of the condition. They follow other ways such as advertising and providing better services to the customers to compete with each other
APPEARS IN
संबंधित प्रश्न
State whether the following statement is True or False
Product differentiation is the most distinguishing feature of monopolistic competition.
The seller is a price maker in the perfect competition.
Explain the features of monopoly.
Demand curve of a firm is perfectly elastic under: (Choose the correct alternative)
(a) Perfect competition
(b) Monopoly
(c) Monopolistic competition
(d) Oligopoly
Explain the implications of the following in an oligopoly market: A few or a few big sellers
In monopolistic completion, goods have no close substitutes.
Define or Explain the following concepts
Monopoly
Define monopoly.
State whether the following statement is true or false.
There is no product differentiation under monopolistic competition.
Distinguish between :
Output method and Expenditure method.
Distinguish between Any FOUR of the following :
Consumption expenditure and Investment expenditure.
Give reasons or explain the following statements
There is single price in perfect competition.
Define or explain the following concept:
Selling cost
State whether the following statement is TRUE and FALSE.
There is no price discrimination under Monopolistic competition.
State whether the following statement is TRUE and FALSE.
In a monopoly market, firm and industry are the same.
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
_____________ appears in a monopoly market.
Fill in the blank with appropriate alternative given below
In ________ market, seller creates products 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
Find the odd word
Selling cost -
