Monopsony

Q. What is Perfect Competition? Describe any three characteristics of Perfect Competition.

Q. What are the characteristics of a perfectly competitive market? Explain.

Q. What are the features of perfect competition?

Q. Explain any four features of perfect competition.

Q. A monopoly firm faces a downward sloping demand curve because _______.

1. it is same as the industry
2. it has an inelastic demand
3. it sells large quantities to few buyers
4. consumers prefer its product

Q. The three primary characteristics of a perfectly competitive market are _____________.

1. The firm's products are homogeneous, the firms are price takers and them are barriers to entry into the market
2. The firm's products are unique; they set their own price and can freely enter and exit the market.
3. The firm's products are unique, they are price takers and there are no barriers to entry in the market.
4. The firm's products are homogeneous; the firms are price takers and can freely enter and exit the market.

Q. Explain "perfect knowledge about the markets" feature of perfect competition.

Q. i. Define a monopolistically competitive market. Give two examples of this market structure.
ii. Explain two important features of this type of market. State one similarity and one difference between monopolistic competition and perfect competition.

Q. Which of the following is a feature of 'Perfect Competition'?

1. All of the above
2. Different prices
3. Perfect knowledge of the market conditions to buyers and sellers
4. Existence of advertising cost

Q. What are the features of pure competition?

Q. Under perfect competition, single seller can influence the price.

1. True
2. False

Q. Which of the following is/are the features of perfect competition ?
(i) Large number of buyers and sellers
(ii) Identical product
(iii) Free entry and exit
(iv) No transportation cost

1. i, ii and iii
2. i, ii, and iv
3. ii, iii and iv
4. i, ii, iii and iv

Q. State any one feature of monopolistic competition.

Q. In which of the following types of market structure, do firms produce homogeneous product?

1. Monopoly
2. Differentiated oligopoly
3. Monopolistic competition
4. Perfect competition

Q. Which of the following refers to Perfect Competition?
i.There are restrictions on buyers and sellers
ii.There are no restrictions on movement of goods
iii.There are no restrictions on factors of production

1. Only (i) and (ii)
2. Only (ii) and (iii)
3. Only (i) and (iii)
4. Only (i)

Q. The features of perfect competition as follows:
I. Large number of buyers and sellers
II. hetrogeneous product
III. free entry and free exit for firms
IV. existence of transport cost Of these

1. I, II and III are correct
2. All are correct
3. I, II and IV are correct
4. I and III are correct

Q. Monopolistic competition market form where:

1. Differential product is produced.
2. Heterogenous.
3. Seller has individual rights over his product.
4. All of the above

Q. Price elasticity of demand for an individual firm under perfect competition is _____________.

1. zero
2. unity
3. less than infinite, but greater than zero.
4. infinite

Q. A seller cannot influence the market price under (Choose the correct alternative) :

1. Perfect competition
2. Monopolistic competition
3. All of the above
4. Monopoly

Q. Firm under perfect competition in the short run can earn only _____________.

1. abnormal profit
2. normal profit
3. loss
4. any of the above

Q. A market structure which has large number of firms producing & selling homogeneous product and the customers have full knowledge about the equilibrium price is __________.

1. perfect competition
2. monopoly
3. monopolistic competition
4. oligopoly

Q. In a perfectly competitive market, in the long run, competitive prices equal the minimum possible _________ cost of good.

1. marginal
2. variable
3. total
4. average

Q. Price-taking firms, i.e., firms that operate in a perfectly competitive market are said to be "small" relative to the market. Which of the following best describes this smallness?

1. The individual firm must have fewer than 10 employees.
2. The individual firm faces a downward-sloping demand curve.
3. The individual firm has assets of less, than Rs. 20 lakh
4. The individual firm is unable to affect market price through its output

Q. Perfect competition is no competition. How?

Q. Same price across the market is a feature of which of the following market structures?

1. Perfect competition
2. Oligopoly
3. Monopolistic competition
4. Monopoly

Q. In perfectly competitive industries firms are termed as ___________.

1. price takers
2. Price setters.
3. Price creators
4. Price makers

Q. What is one of the essential conditions of perfect competition?

1. Only one price for identical goods at any time
2. Product differentiation
3. Many sellers and a few buyers
4. Multiplicity of prices for identical products at any one time

Q. In perfect competition, in the long run, ____________.

1. there are large profits for the firm.
2. there are large losses for the firm.
3. there is normal profit for the firm
4. there are negligible profits for the firm.

Q. If there were no changes in the quantity of food sold, even when its price falls, we would know that _____________.

1. demand was entirely elastic
2. demand has an elasticity of greater than one
3. demand was unit elastic
4. demand was entirely inelastic

Q. A monopoly based on sole state ownership of production and distribution network is known as ________.

1. natural monopoly
2. government monopoly
3. geographical monopoly
4. technological monopoly