Economics

Non-Competitive Markets

Question:

Draw a demand curve in different market situation and also compare its elasticity of demand.

Answer:

ncert-solutions-for-class-12-micro-economics-non-competitive-market-2

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Non-Competitive Markets

Q 1.

What is the importance of monopoly?

Q 2.

What is the value of MR when the demand curve is elastic?

Q 3.

Which features of monopolistic competition are competitive in nature?

Q 4.

Define product differentiation.

Q 5.

Why AR curve (demand curve) under monopolistic competition is more elastic than AR curve under monopoly?

Q 6.

Explain the main features of barriers to the entry of firms.

Q 7.

Under oligopoly, there are large number of buyers and sellers.

Q 8.

What is a price-maker firm?

Q 9.

Demand curve facing a monopoly firm is a constraint for the monopolist."Comment.

Q 10.

Under monopolistic competition there is only one seller of the product.

Q 11.

What is the reason for the long run equilibrium of a firm in monopolistic competition to be associated with zero profit?

Q 12.

Price discrimination should be socially desirable. How?

Q 13.

Why is the demand curve under monopoly less elastic as compared to the demand curve under monopolistic competition?

Q 14.

Give reasons for the following statements:

  1.  Demand curve facing a perfectly competitive firm is a horizontal straight line.
  2. Demand curve facing a monopolistic competitive firm is a downward sloping curve.
  3. Demand curve facing a monopoly firm is less elastic than that curve facing a monopolistic competitive firm.

Q 15.

In which form of market there is product differentiation?

Q 16.

Under monopoly a firm sells the goods at a single price.

Q 17.

Which features of monopolistic competition are monopolistic in nature?

Q 18.

Under which market form, firm is a price-maker?

Q 19.

Explain the feature of few firms in an oligopoly market.

Q 20.

Compare between perfect competition and monopoly.

Q 21.

What are the shapes of AR and MR curves under monopoly?

Q 22.

Giving reasons, state whether the following statements are true or false.
Under monopoly all firms can sell at any price.

Q 23.

List the three different ways in which oligopoly firms may behave.

Q 24.

Under monopoly new firms can enter the industry to raise the supply.

Q 25.

In spite of having monopoly why the Indian Railways has not increased the fare for many years?

Q 26.

How many firms are there in a monopoly market?

Q 27.

Give the meaning of Oligopoly'.

Q 28.

In monopoly, firm is different from industry.

Q 29.

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.

Q 30.

What does Monopolistic Competition mean?

Q 31.

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?

Q 32.

Under monopolistic competition, all the customers have perfect knowledge of the market conditions.

Q 33.

"A day without selling costs is nearly impossible". Comment.

Q 34.

Give reasons for the following statements:

  1. A perfectly competitive firm is a price-taker.
  2. Product differentiation is a characteristic feature of a monopolistic competitive market,
  3. A monopolist cannot fix both the quantity that he likes to produce and the price at which he would like to sell.

Q 35.

Explain the implication of the following:  The feature of  no close substitutes' under monopoly.

Q 36.

Under monopolistic competition price discrimination can be made easily.

Q 37.

What is meant by prices being rigid? How can oligopoly behaviour lead to such an outcome?

Q 38.

Define monopoly.

Q 39.

Although there are few (more than one) firms in oligopoly. Even these firms can enjoy monopoly power. How?

Q 40.

How the efficiency may increase if two firms merge?

Q 41.

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?

Q 42.

Under monopolistic competition, a firm faces a perfectly elastic demand curve.

Q 43.

Selling cost is a nail in the coffin of consumer's sovereignty. How?

Q 44.

What do you mean by duopoly?

Q 45.

If the firm in the toothpaste industry have the following market shares, which market structure would best describe the industiy? [1 Mark]

ncert-solutions-for-class-12-micro-economics-non-competitive-market-11

Q 46.

Average revenue will always be equal to marginal revenue in all market conditions. Defend or refute.

Q 47.

Draw a demand curve in different market situation and also compare its elasticity of demand.

Q 48.

Explain why the demand curve facing a firm under monopolistic competition is negatively sloped?

Q 49.

Explain any two sources of restricted entry under monopoly.

Q 50.

What is meant by price rigidity, under oligopoly.