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प्रश्न
Which of the characteristics separates it from perfect competition and why?
उत्तर
Product differentiation in monopolistic competition separates it from perfect competition because the products are homogeneous. They are identical in all respects such as size, shape and quality in perfect competition. Selling cost is heavy in the case of monopolistic completion whereas the selling is not incurred as they have perfect knowledge of product in perfect competition.
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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 sellers
Explain the implications of the following in a perfectly competitive market:
Freedom of entry and exit to firms
Explain the 'free entry and exit of firms' feature of monopolistic competition.
Price discrimination is possible under monopoly.
Define or Explain the following concepts
Monopoly
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.
Fill in the blank with proper alternatives given in the bracket:
Under monopoly there is existence of ______________ .
State whether the following statement is true or false.
There is no product differentiation under monopolistic competition.
Give reasons or explain the following statements
There is single price in perfect competition.
Answer in detail
What is monopoly? Explain in detail the features of monopoly?
Define or explain the following concept:
Selling cost
Give reason or explain:
Single price prevails in perfect competition.
Give reason or explain:
Selling cost is incurred by a firm in Monopolistic competition.
Give reason or explain:
A monopolist can control the supply of goods.
State whether the following statement is TRUE and FALSE.
Product differentiation is not possible under perfect competition.
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
|
Abnormal profit
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Railway
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Monopolistic Competition
|
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Perfect Competition
|
Prof. Chamberlin
|
|
Pure Competition
|
Homogenous product
|
|
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Cartel
|
|
|
Selling cost
|
PASSAGE
In India, markets for automobiles, cement, steel, aluminium, etc, are the examples of oligopolistic market. In all these markets, there are few firms for each particular product. Duopoly is a special case of oligopoly, in which there are exactly two sellers. Under duopoly, it is assumed that the product sold by the two firms is homogeneous and there is no substitute for it. Examples where two companies control a large proportion of a market are: (i) Pepsi and Coca-Cola in the soft drink market; (ii) Airbus and Boeing in the commercial large jet aircraft market.
Operating systems for smart phones and computers provide excellent examples of oligopolies in big tech. Apple iOS and Google Android dominate smart phone operating systems. Computer operating systems are overshadowed by Apple and Microsoft Windows.
- Give examples of oligopolistic market in India (1 mark)
- Explain the concept of duopoly with a suitable example from the passage (1 mark)
- Express your personal opinion based on the above information (2 marks)
