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प्रश्न
Explain the implications of the following : Product differentiation in monopolistic competition.
उत्तर
Product differentiation in monopolistic competition:-
Monopolistic competition is a form of market in which there are many sellers of the product, but the product of each seller is different from one another. Products are differentiated through designs and colour of the packaging of the product. It attracts consumers to buy the product at a higher price level. As there are many rivals and close substitutes of products in the market, the monopolistic firm cannot have full control over the price. A monopolistic firm has partial control over price only through product differentiation. These products cause high elasticity of demand for the firm’s product because of the availability of a large number of close substitutes. Also, it paves the way to consumer exploitation through a higher price.
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संबंधित प्रश्न
Explain the features of monopoly.
Homogenous product’ is a characteristic of : (choose the correct alternative)
(a) Perfect competition only
(b) Perfect oligopoly only
(c) Both (a) and (b)
(d) None of the above
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: Barriers to entry of new firms
Which of the characteristics separates it from perfect competition and why?
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 with reason:
Perfect competition means pure competition.
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.
Distinguish between the following:
Perfect competition and Monopolistic competition
Give reason or explain:
Single price prevails in perfect 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
Monopolist means __________ competitive.
Answer the following question.
Elaborate three main features of a monopoly form of market.
In an economic sense, the market includes the following activities
- The place where goods are sold and purchased.
- An arrangement through which buyers and sellers come in close contact with each other directly or indirectly.
- A shop where goods are sold.
- All of the above.
