Advertisements
Advertisements
Question
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
Solution
The correct option is (c). More units of commodity can be sold only at a lower price is the common feature of monopoly and monopolistic competition. Accordingly, firms demand curve sloped downwards under both markets. Therefore, there is an inverse relationship between price and demand of the product.
APPEARS IN
RELATED QUESTIONS
Explain the implications of the following in an oligopoly market:
Inter- dependence between firms
In monopolistic completion, goods have no close substitutes.
Give reason or explain the following.
Price discrimination is possbile under monopoly.
State whether the following statement is true or false.
There is no product differentiation under monopolistic competition.
State with reasons, whether you Agree or Disagree with the following statements.
Perfect competition is an imaginary concept.
Give reasons or explain the following statements
There is single price in perfect competition.
State with reason whether you agree or disagree with the following statement
Perfect Competition means Monopolistic Competition.
Write short note on the following:
Features of pure competition
Distinguish between the following:
Natural monopoly and legal monopoly
Define or explain the following concept:
Selling cost
State whether the following statement is TRUE and FALSE.
In a monopoly market, firm and industry are the same.
State whether the following statement is TRUE and FALSE.
Product differentiation is not possible under perfect competition.
Fill in the blank with appropriate alternative given below
Under perfect competition commodities are ________________ in nature.
Fill in the blank with appropriate alternative given below
In ________ market, seller creates products differentiation.
Distinguish between perfect competition and monopolistic competition on the basis of the following:
(a) Number of sellers
(b) Nature of product
(c) Selling cost
In which one of the following types of markets are Average Revenue curve and Market Demand curve the same?
