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Question
Which of the following market types has the fewest number of firms?
Options
Perfect Competition
Monopoly
Monopolistic competition
Monopsony
Solution
Monopoly
Explanation:
A monopolistic market has the fewest number of enterprises since only one firm controls the whole market. This firm is the only manufacturer or provider of a product or service, as opposed to other market categories that have several enterprises.
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RELATED QUESTIONS
Justify the following statement with any two valid arguments. 'In a perfect competition market structure, an individual firm does not have any role in determining price’.
“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
The seller in a monopoly market is a price maker.
Read the following statements carefully and choose the correct alternative:
Assertion (A): Under Perfect Competition, each firm faces a perfectly elastic demand curve.
Reason (R): Firm is a price maker under perfect competition.
What is perfect competition?
Give two characteristics of perfect competition.
Highlight the importance of selling costs in a monopolistically compatible market.
Identify the market form for the following:
Railways in India.
State the market form of the following commodity.
Fighter Aircrafts
Explain the main characteristics of a monopoly.
