Question:
Which features of monopolistic competition are monopolistic in nature?
Answer:
The features of monopolistic competition are:
- Product differentiation
- Downward sloping AR and MR curves.
Non-Competitive Markets
Q 1.
What is the importance of monopoly?
Q 2.
Which features of monopolistic competition are competitive in nature?
Q 3.
What is a price-maker firm?
Q 4.
Under monopoly a firm sells the goods at a single price.
Q 5.
Under which market form, firm is a price-maker?
Q 6.
Why is the demand curve under monopoly less elastic as compared to the demand curve under monopolistic competition?
Q 7.
What is the value of MR when the demand curve is elastic?
Q 8.
How many firms are there in a monopoly market?
Q 9.
Which features of monopolistic competition are monopolistic in nature?
Q 10.
Demand curve facing a monopoly firm is a constraint for the monopolist."Comment.
Q 11.
Under monopolistic competition there is only one seller of the product.
Q 12.
Under oligopoly, there are large number of buyers and sellers.
Q 13.
Why AR curve (demand curve) under monopolistic competition is more elastic than AR curve under monopoly?
Q 14.
Explain the main features of barriers to the entry of firms.
Q 15.
Giving reasons, state whether the following statements are true or false.
Under monopoly all firms can sell at any price.
Q 16.
What is the reason for the long run equilibrium of a firm in monopolistic competition to be associated with zero profit?
Q 17.
Define product differentiation.
Q 18.
What are the shapes of AR and MR curves under monopoly?
Q 19.
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 20.
List the three different ways in which oligopoly firms may behave.
Q 21.
What does Monopolistic Competition mean?
Q 22.
Under monopoly new firms can enter the industry to raise the supply.
Q 23.
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 24.
Give reasons for the following statements:
- A perfectly competitive firm is a price-taker.
- Product differentiation is a characteristic feature of a monopolistic competitive market,
- A monopolist cannot fix both the quantity that he likes to produce and the price at which he would like to sell.
Q 25.
Price discrimination should be socially desirable. How?
Q 26.
Give reasons for the following statements:
- Demand curve facing a perfectly competitive firm is a horizontal straight line.
- Demand curve facing a monopolistic competitive firm is a downward sloping curve.
- Demand curve facing a monopoly firm is less elastic than that curve facing a monopolistic competitive firm.
Q 27.
In monopoly, firm is different from industry.
Q 28.
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 29.
In spite of having monopoly why the Indian Railways has not increased the fare for many years?
Q 30.
Compare between perfect competition and monopoly.
Q 31.
Explain the implication of the following: The feature of no close substitutes' under monopoly.
Q 32.
Under monopolistic competition, all the customers have perfect knowledge of the market conditions.
Q 33.
How the efficiency may increase if two firms merge?
Q 34.
Under monopolistic competition, a firm faces a perfectly elastic demand curve.
Q 35.
"A day without selling costs is nearly impossible". Comment.
Q 36.
Although there are few (more than one) firms in oligopoly. Even these firms can enjoy monopoly power. How?
Q 37.
What is meant by prices being rigid? How can oligopoly behaviour lead to such an outcome?
Q 38.
Explain the feature of few firms in an oligopoly market.
Q 39.
Give the meaning of Oligopoly'.
Q 40.
In which form of market there is product differentiation?
Q 41.
If the firm in the toothpaste industry have the following market shares, which market structure would best describe the industiy? [1 Mark]
Q 42.
What do you mean by duopoly?
Q 43.
Explain why the demand curve facing a firm under monopolistic competition is negatively sloped?
Q 44.
Selling cost is a nail in the coffin of consumer's sovereignty. How?
Q 45.
Discuss the relationship between total revenue, average revenue and marginal revenue under perfect competition and monopolistic competition. Use diagrams.
Q 47.
Explain any two sources of restricted entry under monopoly.
Q 48.
A monopolist can sell any quantity he likes at a price. Give reasons with true or false.
Q 49.
Average revenue will always be equal to marginal revenue in all market conditions. Defend or refute.
Q 50.
What is meant by price rigidity, under oligopoly.
