Explain two points of distinction between monopoly and monopolist… - Vidyadip

Question

Explain two points of distinction between monopoly and monopolistic competition.

✓

Answer

Difference between monopoly and monopolistic competition are:

S .No	Basis	Monopoly	Monopolistic competition
1.	Meaning	Monopoly is a form of market in which there is a single seller selling a product which has no close substitutes	Monopolistic competition is a form of market in which there are large number of sellers selling differentiated but closely related goods.
2.	Number of sellers and buyers	Under this, there is a single seller of a commodity and large number of buyers.	There are a large number of buyers and sellers. Also, the size of each firm is small. Each firm has a limited share of the market.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "4 Marks Question" from Market Equilibrium→Market Equilibrium — all question types→Economics STD 11 Commerce question papers→CBSE Board STD 11 Commerce question papers→CBSE Board question paper generator→

Similar questions

What is maximum price ceiling? On what type of goods is it normally imposed? Use diagram.

A consumer spends ₹ 1,000 on a good priced at ₹ 10 per unit. When its price falls by 20 percent, the consumer spends ₹ 800 on the good. Calculate the price elasticity of demand by the Percentage method.

A $5\%$ fall in price of a good leads to $10\%$ rise in its demand. A consumer buys $40$ units of a good at a price of ₹ $10$ per unit. How many units will he buy at a price of ₹ $12$ per unit?

What are the general rules to construct a Time Series graph?

Complete the following table:

Output (Units)	Total Variavle Cost (TVC) (₹)	Average Variable Cost (AVC) (₹)	Marginal Cost (MC) (₹)
1	__	12	__
2	20	__	__
3	__	10	10
4	40	__	__

The fixed cost of a firm is ₹ 120. Its marginal cost at different levels of output is given below.
Calculate the total cost and average variable cost at each output.

Output (Units)	1	2	3	4
Marginal Cost	60	52	56	64

Given that the total fixed cost is = 60, complete the following table:

Output (Units)	AVC	TC	MC
1	20	-	-
2	15	-	-
3	20	-	-

Explain the meaning of marginal rate of substitution. Why does it diminish as one good is substituted for the other Explain.

Explain the feature of few firms in an oligopoly market.

At a price of $5$ per unit of a commodity A, Total Revenue is ₹ $800$. When its price rises by $20\%$, Total Revenue increases by ₹ $400.$ Calculate its Price Elasticity of Supply.