Match List-I with List-II
| List-I (Market form) | List-II (Feature) | ||
|---|---|---|---|
| (A) | Perfect competition | (I) | Many sellers of differentiated products |
| (B) | Monopoly | (II) | Each firm is a price taker |
| (C) | Oligopoly | (III) | A single seller of a product that has no close substitute |
| (D) | Monopolistic competition | (IV) | A small number of large sellers |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → (A)-(II), (B)-(III), (C)-(IV), (D)-(I)
(A) Perfect competition — this matches (II) Each firm is a price taker. There are very many firms selling an identical product, so no single firm can change the market price.
(B) Monopoly — this matches (III) A single seller of a product that has no close substitute.
(C) Oligopoly — this matches (IV) A small number of large sellers, each of whom watches what the others do.
(D) Monopolistic competition — this matches (I) Many sellers of differentiated products, such as the many brands of soap or toothpaste.