What do you mean by duopoly?
When there are only two firms producing a product, it is called duopoly. Under duopoly it is assumed that the product sold by the two firms is homogeneous and there is no substitute for it. It is a special case of oligopoly.
Why is the demand curve under monopoly less elastic as compared to the demand curve under monopolistic competition?
Why AR curve (demand curve) under monopolistic competition is more elastic than AR curve under monopoly?
Giving reasons, state whether the following statements are true or false.
Under monopoly all firms can sell at any price.
What is the reason for the long run equilibrium of a firm in monopolistic competition to be associated with zero profit?
Because of product differentiation under monopolistic competition, price tends to be higher than what it ought to have been in real terms and hence consumers suffer. How?
Give reasons for the following statements:
Give reasons for the following statements:
Under oligopoly though firms are free to take decisions about price and quantity to be sold but they do not change the price and hence buyers are deprived of the benefit of fall in price. Comment.
How to reduce the incidence of selling cost under monopolistic competition because of which price tends to be higher than what it would have been if production cost would have been the sole basis?
In spite of having monopoly why the Indian Railways has not increased the fare for many years?
Explain the implication of the following: The feature of no close substitutes' under monopoly.
Under monopolistic competition, all the customers have perfect knowledge of the market conditions.
Although there are few (more than one) firms in oligopoly. Even these firms can enjoy monopoly power. How?
What is meant by prices being rigid? How can oligopoly behaviour lead to such an outcome?
If the firm in the toothpaste industry have the following market shares, which market structure would best describe the industiy? [1 Mark]
Explain why the demand curve facing a firm under monopolistic competition is negatively sloped?
Discuss the relationship between total revenue, average revenue and marginal revenue under perfect competition and monopolistic competition. Use diagrams.
Suppose that the demand curve for the XYZ company slopes downward and to the right. Would you conclude that the firm is a price taker or a price maker? Give reasons.
A monopolist can sell any quantity he likes at a price. Give reasons with true or false.
Draw a demand curve in different market situation and also compare its elasticity of demand.