Advertisements
Advertisements
Question
Explain the 'free entry and exit of firms' feature of monopolistic competition.
Solution
Free entry and exit of firms under monopolistic competition, firms are free to enter in or exit from the industry at any time according to their wish. This implies that there are neither abnormal profits nor any abnormal losses to a firm in the long run. But entry under monopolistic competition is not so easy and free as the situation prevails under perfect competition.
APPEARS IN
RELATED QUESTIONS
The objective of a seller in monopoly market is...............................
(loss \ profit \ negative profit \ zero profit)
Explain the features of monopoly.
Explain the implications of the following in a perfectly competitive market:
Large number of buyers
Explain the implications of the following in a perfectly competitive market :
Homogeneous products.
‘A few big sellers’ is a characteristics of : (choose the correct alternative)
a. Perfect competition
b. Monopolistic competition
c. Oligopoly
d. None of the above
In monopolistic completion, goods have no close substitutes.
Define monopoly.
What can you say about the number of buyers and sellers under monopolistic competition?
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 with reason:
Perfect competition means pure competition.
State with reasons, whether you Agree or Disagree with the following statements.
Perfect competition is an imaginary concept.
Answer the following question
What are the features of monopolistic competition?
Write short note on the following:
Features of pure competition
Distinguish between the following:
Natural monopoly and Social monopoly
State whether the following statement is TRUE and FALSE.
In a monopoly market, firm and industry are the same.
Match the following:
|
Group A
|
Group B
|
|
Monopoly
|
Public monopoly
|
|
Product differentiation
|
Abnormal profit
|
|
Railway
|
Monopolistic Competition
|
|
Perfect Competition
|
Prof. Chamberlin
|
|
Pure Competition
|
Homogenous product
|
|
|
Cartel
|
|
|
Selling cost
|
Answer the following question.
What is the reason for an indeterminate demand curve under Oligopoly?
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.
