Practicing Success
Practicing Success
CUET Preparation Today
| Match column I with correct pair in column II. Column I i. Perfect competition ii. Monopoly iii. Monopolistic competition iv. Oligopoly Column II a. Perfectly elastic demand b. Price discrimination c. Product differentiation d. Non price competition |
i-a, ii-b, iii-c, iv-d i-a, ii-b, iii-d, iv-c i-a, ii-d, iii-b, iv-c i-d, ii-c, iii-a, iv-b |
| i-a, ii-b, iii-c, iv-d |
| In a perfect competition, there is perfectly elastic demand curve. In monopoly, price discrimination is possible. Products are close substitutes and not perfect substitutes in monopolistic competition. This means products are differentiated by firms. In oligopoly, firms focus on non-price competition more than price competition because of high interdependence of firms. A price decrease by one firm may entail a response from competitor leading to price wars. So there is price rigidity and competition based on price is avoided. |
