1
Question
Under perfect competition, the price is determined by the industry. At this price a firm can sell any quantity. The AR curve is perfectly elastic. Under monopoly, firms can sell more only at a lower price. So, AR is negatively sloped.
Which form of market is known as a price maker?
[1 mark]
Under perfect competition, the price is determined by the industry. At this price a firm can sell any quantity. The AR curve is perfectly elastic. Under monopoly, firms can sell more only at a lower price. So, AR is negatively sloped.
Which form of market is known as a price maker?
[1 mark]
Open in App
Solution
The correct option is B Monopoly
Monopolists are the only sellers of a certain product. So, they are the ones who decide the price of the commodity, and are called price makers.
Monopolists are the only sellers of a certain product. So, they are the ones who decide the price of the commodity, and are called price makers.
Suggest Corrections
0
Similar questions
View More
Join BYJU'S Learning Program
Explore more
Join BYJU'S Learning Program
