Market and Price Determination-Perfect Competition (CBSE Class-12 Economics): Questions 1 - 9 of 9

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Question number: 1

» Market and Price Determination » Perfect Competition

One Liner Question▾

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What is meant by the term ‘price taker’ in the context of a firm?

Question number: 2

» Market and Price Determination » Perfect Competition

Short Answer Question▾

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Explain the implication of ‘homogenous product’ feature of perfect competition.

Question number: 3

» Market and Price Determination » Perfect Competition

Short Answer Question▾

Write in Short

Explain the implications of the following features of perfect competition:

(a) large number of buyers and sellers

(b) freedom of entry and exit of firms

Question number: 4

» Market and Price Determination » Perfect Competition

Short Answer Question▾

Write in Short

State four features of a perfectly competitive market.

Question number: 5

» Market and Price Determination » Perfect Competition

Appeared in Year: 2011

Short Answer Question▾

Write in Short

Define flow variables.

Question number: 6

» Market and Price Determination » Perfect Competition

Essay Question▾

Describe in Detail

Explain briefly the three features of perfect competition.

Explanation

1. Homogenous Product: In this case, all sellers produce homogeneous i. e. perfectly identical products. All products are perfectly same in terms of size, shape, taste, color, ingredients, quality, trademarks etc. This ensures the existence of single price in the market.

2. Perfect Knowledge: On the front of both, buyers… (163 more words) …

Question number: 7

» Market and Price Determination » Perfect Competition

Essay Question▾

Describe in Detail

Why is a firm under Perfect competition a price-taker? Explain

Explanation

A firm under perfect competition is a price –taker because of the existence of large number of sellers in perfect competitive market selling homogenous products. In large number of seller arise a situation of free and perfect competition in market.

The market price is determined by hands of market by… (35 more words) …

Question number: 8

» Market and Price Determination » Perfect Competition

Essay Question▾

Describe in Detail

Explain the following: (I) ‘Free entry and exit’ feature of perfect competition, (ii) ‘Differentiated products’ feature of monopolistic competition.

Explanation

(i) ‘Free entry and exit’ feature of perfect competition

Answer: - Features of ‘free entry and exit’ is given below:

In many markets are featured by big cost of entry and exit. Cost of exiting an industry can add things as pay for workers and entry in market it contain… (210 more words) …

Question number: 9

» Market and Price Determination » Perfect Competition

Essay Question▾

Describe in Detail

Explain the following features of perfect competition: (i) Large number of buyers and sellers (ii) Homogeneous products

Explanation

(i) Large number of buyers and sellers: -

Large number of buyers and sellers mention that number of sellers is large and single seller’s share in total market supply of the product. It has conclusion. The dominant market price is one it was set through the interaction of market demand… (181 more words) …

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