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Question
Explain the implications of the following in an oligopoly market: A few or a few big sellers
Solution
Only few number of firms in the industry but they are big firms dominate the market for product. They establish brand loyalty through intense advertising. Hence, they are able to earn extra-normal profit.
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RELATED QUESTIONS
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
Giving reason, state whether the following statement is true or false.
A Monopolist can sell any quantity he likes at a price.
Average revenue and Price are always equal under:(choose the correct alternative)
(a) Perfect competition only
b) Monopolistic competition only
(c) Monopoly only
(d) All market forms
A seller cannot influence the market price under (choose the correct alternative)
a) Perfect competition
b) Monopoly
c) Monopolistic competition
d) All of the above
Price discrimination is possible under monopoly.
In monopolistic completion, goods have no close substitutes.
State with reasons, whether you Agree or Disagree with the following statements.
Perfect competition is an imaginary concept.
State with reason whether you agree or disagree with the following statement
Perfect Competition means Monopolistic Competition.
Answer in detail
What is Perfect Competition? Explain price determination under Perfect Competition.
Answer in detail
What is monopoly? Explain in detail the features of monopoly?
Distinguish between the following:
Perfect competition and Monopoly
Distinguish between the following:
Perfect competition and Monopolistic competition
Give reason or explain:
Price discrimination is possible under monopoly.
State whether the following statement is TRUE and FALSE.
There is no price discrimination under Monopolistic competition.
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.
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.
Observe the table and answer the question:
| Price of banana (per dozen) in ₹ | Demand (in dozen) | Supply (in dozen) | Relation between DD and SS |
| 10 | 500 | 100 | DD > SS |
| 20 | 400 | _____ | DD > SS |
| 30 | _____ | 300 | DD = SS |
| 40 | 200 | _____ | DD < SS |
| 50 | ______ | 500 | DD < SS |
Fill in the blanks in the above schedule.
Features of oligopoly market:
- There are few firms or sellers.
- Sellers sell differentiated product.
- There is free entry and exit of firms.
- There is considerable element of uncertainty in this type of market.
Find the odd word
Selling cost -
