Professional Documents
Culture Documents
Answer No1
Answer No1
Answer no. 2---- I specify news paper industry for perfect competition
in Indian scenario because there are many sellers of newspapers such
as dainik jagran , amar ujala ,hidustan times ,times of india , the hindu
etc. ,they have also not product differentiation i.e. they supply same
product .also the price elasticity of demand is infinite i.e. there is no
degree of over the price of the news paper .
Answer no. 5--- yes I am agree with this statement , as in this situation
they are price setters not the price takers and also the entry barriers are
high . like oligopoly, here also few sellers/suppliers of oil. and also in
this situation there is interdependence and perfect knowledge about the
market.
Answer no. 6----print media market is the example where all this
happens.
Answer no. 12 --- because in perfect competition firms are price takers
and in monopoly the firm is price maker i.e. they have full control over
the price.