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Question
Giving reason, state whether the following statement is true or false.
A Monopolist can sell any quantity he likes at a price.
Solution
False, a monopolist cannot sell any quantity he likes at a price. 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.
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RELATED QUESTIONS
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 :
Homogeneous products.
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Define or Explain the following concepts
Monopoly
Give reason or explain the following.
Price discrimination is possbile under monopoly.
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There is no product differentiation under monopolistic competition.
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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
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Natural monopoly and Social monopoly
Give reason or explain:
Price discrimination is possible under monopoly.
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Selling cost is incurred by a firm in Monopolistic competition.
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Sellers and the buyers are price takers in perfect competition.
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In a monopoly market, firm and industry are the same.
Fill in the blank with appropriate alternative given below
In ________ market, seller creates products differentiation.
Fill in the blank with appropriate alternative given below
Monopolist means __________ competitive.
Features of oligopoly market:
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- Sellers sell differentiated product.
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- There is considerable element of uncertainty in this type of market.
