SCERT Maharashtra solutions for Economics [English] 12 Standard HSC chapter 5 - Forms of Market [Latest edition]

Features of oligopoly market:

1. There are few firms or sellers.
2. Sellers sell differentiated product.
3. There is free entry and exit of firms.
4. There is considerable element of uncertainty in this type of market.

Characteristics of long period market:

1. All factors of production and costs are variable.
2. Firms are able to adjust all costs.
3. It is for a few years, generally up to five years.
4. Supply of commodity cannot be increased.

Complete the correlation:

Perfect competition : Free entry and exit : : ______ : Barriers to entry.

Monopoly: Price discrimination:: ______ : Product differentiation

Type of market showing some but not all the features of a competitive market –

Number of firms producing differentiated products which are closely related –

Find the odd word

Market on the basis of place -

Find the odd word

Selling cost -

The interaction of demand and supply to determine price of a commodity in perfect competition is ______.

Product differentiation is the main feature of ______.

Assertion (A): Monopolist is a price maker.

Reasoning (R): Monopolist can fix the price of his own product as he controls the whole market supply.

Assertion (A): Product differentiation is the main feature of monopolistic competition.

Reasoning (R): Under monopolistic competition, all the products are perfect substitutes to each other

Identify & explain the concept from the given illustration.

Anoop Ayurveda produces unique herbal hair oil which has no close substitutes.

Identify & explain the concept from the given illustration.

Sunrise Cosmetic Company spends on advertisements, broadcasts on radio and television as well as distributes free samples of its shampoo product to in order to increase its demand.

Distinguish Between

Short period and Long period

Distinguish between the following:

Perfect competition and Monopoly

Distinguish Between

Monopoly and Monopolistic competition

Explain any four features of perfect competition

Explain the features of Oligopoly.

Explain any four features of monopoly

Explain any four features of monopolistic competition

State with reason whether you agree or disagree with the following statement:

Seller is the price maker under perfect competition.

State with reason whether you agree or disagree with the following statement:

There is product differentiation under monopolistic competition.

State with reason whether you agree or disagree with the following statement:

Selling cost is the only feature of monopolistic competition.

Study the following table, figure, passage and answer the question given below it.

1. Complete the table (2m)
2. Derive the equilibrium price from the above table with the help of Suitable diagram. (2m)

1. Mention the equilibrium point and equilibrium price in above diagram. (2m)
2. Explain the concept of equilibrium price with the help of above diagram (2m)

PASSAGE

Amul is the first choice of so many ice cream lovers in India among the top ice cream brand category. Amul brand, owned by Gujarat Co-operative Milk Marketing Federation, was established in 1946 in Anand, Gujarat.

The second on the list of top ice cream brands in India is Vadilal.

Cornetto and Magnum are one of the top ice cream brands in India owned by Hindustan Unilever. Mother Dairy is a very strong name in the Indian ice cream industry. This company is very similar to Amul, in terms of the products, they manufacture and sell. Another big player in the ice cream industry is Havmor. Havmor Company has been able to stand strong as one of the big fighters in the battle of top ice cream brands in India for very long. Ice cream market also has local and less popular brands apart from the top brands.

Amul was (and still is) in the Guinness record for running the longest- ever advertising campaign. The advertising strategy of Amul through digital marketing made the most of it through platforms such as Facebook, Twitter, Instagram, and others.

1. Identify the most important feature of the ice cream market (1 marks)
2. Identify the type of cost incurred by firms on advertising campaigns and strategies. (1 marks) 
3. Express your personal opinion about the ice cream market based on the above information (2 marks)

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.

1. Give examples of oligopolistic market in India (1 mark)
2. Explain the concept of duopoly with a suitable example from the passage (1 mark)
3. Express your personal opinion based on the above information (2 marks)

Explain the concept of perfect competition and price determination under perfect competition