Social surplus is maximized in case of _______.

Perfect competition

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Oligopoly

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Monopoly

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Monopolistic competition

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Solution

The correct option is A
Perfect competition

Social surplus is maximized in case of perfect competition since resources allocation is controlled by the invisible hand of market demand are supply.

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Similar questions

Q. Distinguish between the following:

1. Perfect competition and Pure competition

2. Perfect competition and Monopoly

3. Natural monopoly and Social monopoly

4. Natural monopoly and legal monopoly

5. Perfect competition and Monopolistic competition

Q. Firm's demand curve shows highest elasticity in a state of monopolistic competition (in which there is a large number of close substitutes) than in a state of monopoly or perfect competition.

Compare demand curves facing a seller under conditions of perfect competition, monopolistic competition and monopoly, clearly reflecting the difference in their elasticities. Draw 3 curves in a single diagram.

Q. Give reasons or explain:

1. Single price prevails in perfect competition.

2. Price discrimination is possible under monopoly.

3. Selling cost is incurred by a firm in Monopolistic competition.

4. A monopolist can control the supply of goods.

5. Sellers and the buyers are price takers in perfect competition.

Under perfect competition, rate of

T R

never declines, but under monopoly and monopolistic competition, it does.

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Social surplus is maximized in case of _______.

The correct option is A Perfect competition Social surplus is maximized in case of perfect competition since resources allocation is controlled by the invisible hand of market demand are supply.

The correct option is A
Perfect competition

Social surplus is maximized in case of perfect competition since resources allocation is controlled by the invisible hand of market demand are supply.