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Question
Identify the market form for seller A on the basis of the following information:
| Units of output sold | Price offered by seller A in ₹ |
| 30 | 10 |
| 40 | 10 |
| 50 | 10 |
Options
Monopoly
Monopolistically competitive market
Perfect competition market
Monopsony
Solution
Perfect competition market
Explanation:
In a perfect competition market, the price is constant regardless of the amount of output sold. The table shows that seller A offers a price of ₹10, which remains constant even when the amount sold increases from 30 to 50 units. This conduct is typical of perfect competition, in which firms are price takers and cannot affect market prices.
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