Advertisements
Advertisements
Question
Following is not the feature of perfect competition:
Options
Very large number of buyers and sellers
Homogeneous product
Free entry or exit of firms
Selling costs
Solution
Selling costs
Explanation:
Under perfect competition, there are no selling costs since the items are homogeneous and the same across enterprises. Firms do not need to differentiate or sell their products because they are all the same, and consumers are well-informed.
RELATED QUESTIONS
Which two forms of market earn normal profit in the long run?
“While shopping for fruits in the local market you see many seller selling fruits”. In this context answer the following:
- What is the type of market referred to?
- State and draw the type of demand curve faced by the market above.
- Differentiate between the market indicated above and monopoly on the basis of:
- No. of sellers
- Market price
- Entry and exit of firms in the market
Following is the feature of perfect competition:
Match the following and select the correct option:
| Column I | Column II | ||
| (i) | Perfect competition | (A) | Differentiated Products |
| (ii) | Monopoly | (B) | Few large firms |
| (iii) | Monopolistic Competition | (C) | Single seller |
| (iv) | Oligopoly | (D) | Homogeneous products |
A market where homogeneous products are sold with no control over price by an individual firm or a buyer is ______.
The monopolist's downward sloping demand curve means that it can increase sales only by changing a lower price.
Imperfect knowledge is a characteristic feature of:
Which one of the following is NOT found in a perfectly competition market?
Match the following:
| Column I | Column II | ||
| A. | Monopoly | (i) | Availability of close substitutes |
| B. | Oligopoly | (ii) | Absence of close substitutes |
| C. | Perfect competition | (iii) | Few large sellers |
| D. | Monopolistic competition | (iv) | Homogeneous products |
Give three points of difference between perfect competition and monopoly.
In which form of market is the seller a price taker? Justify your answer.
Identify the market form for the following:
Railways in India.
Which type of market structure is the following? Give reason.
Mobile phone services
Product differentiation is practised in monopolistic competition? Give reasons.
Monopolistic competition is the perfect blending of monopoly and perfect competition. Explain.
With the help of an example explain the meaning of price discrimination.
Give two examples of monopolistically competitive market.
What is the effect on price when a perfectly competitive firm tries to sell more?
What is the difference between perfect and imperfect oligopoly?
Why an individual firm under perfect competition cannot influence the market price?
