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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
The objective of a seller in monopoly market is...............................
(loss \ profit \ negative profit \ zero profit)
Differentiated products is a characteristic of: (Choose the correct alternative):
(a) Monopolistic competition only
(b) Oligopoly only
(c) Both monopolistic competition and oligopoly
(d) Monopoly
Explain the implications of the following in a perfectly competitive market :
Large number of sellers
Explain the implications of the following in an oligopoly market: Barriers to entry of new firms
What is price-maker firm?
Distinguish between perfect oligopoly and imperfect oligopoly. Also, explain the interdependence between the firms' feature of oligopoly.
In monopolistic completion, goods have no close substitutes.
Explain the significance of the feature 'product differentiation' in monopolistic competition.
Answer the following question :
What are the features of monopolistic competition ?
State whether the following statement is true or false.
There is no product differentiation under monopolistic competition.
Answer in detail
What is Perfect Competition? Explain price determination under Perfect Competition.
Distinguish between the following:
Perfect competition and Monopoly
Give reason or explain:
A monopolist can control the supply of goods.
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.
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
|
|
Perfect Competition
|
Prof. Chamberlin
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Pure Competition
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Homogenous product
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|
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Cartel
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|
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Selling cost
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Fill in the blank with appropriate alternative given below
_____________ appears in a monopoly market.
Find the odd word
Selling cost -
