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Question
Identify the market form for the following:
Perfectly elastic demand.
Solution
The market form associated with perfectly elastic demand is perfect competition.
RELATED QUESTIONS
What do you mean by price discrimination?
In which type of market price discrimination is practiced? Explain with an example.
The image above shows a departmental store of a market structure.
- Identify the form of market as observed from the above image.
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- Type of product
- Entry and exit of firms
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Firm A hires the services of Rohit Sharma to act as the Brand ambassador for its products X. Identify the nature of market for commodity X.
Read the given statements carefully and select the correct option.
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Match the following:
| Column I | Column II | ||
| A. | Demand curve under perfect competition | (i) | Indeterminate demand curve |
| B. | Demand curve under monopoly | (ii) | Downward sloping but less elastic |
| C. | Demand curve under monopolistic competition | (iii) | Horizontal straight line |
| D. | Demand curve under oligopoly | (iv) | Elastic demand curve |
What is perfect competition?
What is meant by oligopoly?
Give two characteristics of perfect competition.
What is meant by product differentiation?
Highlight the importance of selling costs in a monopolistically compatible market.
State the market form of the following commodity.
Railways
Identify the market form for the item given below:
Homogeneous goods
Explain any four features of perfect competition.
Which type of market structure is the following? Give reason.
Mobile phone services
With the help of an example explain the meaning of price discrimination.
Why can a monopolist charge different prices in different markets?
What does perfectly elastic demand curve faced by a competitive firm indicate?
Why do producers incur high selling costs in an imperfect market?
Why an individual firm under perfect competition cannot influence the market price?
