CA Foundation · Business Economics · Price Determination in Different Markets
Which of the following market structures is characterised by a single seller of a product that has no close substitutes and by strong barriers to entry?
The answer is monopoly. A monopoly market has a single seller whose product has no close substitutes, and entry by other firms is blocked by barriers. The other structures all involve several or many sellers, so they do not fit this description.
- AMonopolyCorrect
- BOligopoly
- CMonopolistic competition
- DPerfect competition
Explanation
A monopoly has one seller, no close substitutes and barriers to entry. Oligopoly has a few sellers, monopolistic competition has many sellers with differentiated products, and perfect competition has many sellers of a homogeneous product with free entry.
Did you get it right without looking?
One question tells you little. A timed set on Price Determination in Different Markets shows your real accuracy, how long you take and where you lose marks.
More Price Determination in Different Markets questions
- Under monopoly, if the government imposes a tax of ₹10 per unit sold, who bears the primary burden of the tax depends on which of the follow…
- In the kinked demand curve model, the marginal revenue curve has a vertical gap (discontinuity) at the output corresponding to the kink. Wha…
- Which of the following is the main source of the downward-sloping, fairly elastic demand curve faced by a firm under monopolistic competitio…
- In the short run, a perfectly competitive firm is producing the output at which MC equals market price. At this output, the price is less th…
- A monopolist faces the linear demand curve P = 80 - 4Q. At what output is total revenue maximised?
- A monopolist faces the demand curve P = 100 - 2Q and has a constant marginal cost of Rs 20 per unit. What price will the profit-maximising m…