Match the items of List-I with the items of List-II and find the correct combination:List - I
(Market Structure)List - II
(Nature of industry where prevalent)(a) Perfect competition (i) Aluminium and passenger cars (b) Oligopoly (ii) Public utilities like Telephones and Electricity (c) Monopoly (iii) Manufacturing : T.V. Sets, Refrigerators (d) Monopolistic competition (iv) Farm Products : Grains
(a)-(iv), (b)-(i), (c)-(ii), (d)-(iii)
The task is to link each market structure to the industry example that best fits its defining characteristics - the number of sellers, the nature of the product, and the freedom of entry.
Perfect competition needs a very large number of small sellers offering an identical (homogeneous) product with free entry and exit; farm products such as grains fit this best, since countless farmers sell an undifferentiated crop, so (a)-(iv). Oligopoly has just a few large firms dominating the market, exactly the case in aluminium and passenger cars, where a handful of big producers compete, so (b)-(i).
Monopoly means a single seller with no close substitute, typical of public utilities like telephones and electricity that were historically run as one supplier, so (c)-(ii). Monopolistic competition has many firms selling differentiated but similar products through branding, which describes manufactured consumer goods like TV sets and refrigerators, so (d)-(iii).
Assembling these pairings gives (a)-(iv), (b)-(i), (c)-(ii), (d)-(iii), which is the second code. The other options mismatch at least one structure - for instance placing grains under monopoly or public utilities under perfect competition - and so are wrong.
Hence the correct combination is (a)-(iv), (b)-(i), (c)-(ii), (d)-(iii).
Similar Questions
The market share data for an industry, comprising five companies, is given below :
Company Market Share (%) A 35 B 25 C 18 D 12 E 10 This industry’s three-firms Herfindahl-Hirschman index shall be :
The Competition Commission of India has no role in regulating which of the following?
Consider the following statements:
(1) Exclusive dealing amounts to a restrictive agreement under the Competition Act, 2002.
(2) The rate of growth in the service sector in India is highest among all the other sectors of economy.
(3) Predatory pricing is not regulated under any law.
(4) A company using sales force promotion and trade promotion is using "Pull" strategy.
Indicate the correct answer out of the following:
Given below are two statements : one is labelled as Assertion (A) and the other is labelled as Reason (R).
Assertion (A) : In monopolistic competition, firms face a downward-sloping demand curve that is more elastic than under monopoly.
Reason (R) : In monopolistic competition, close substitutes of the product are available in the market.
In the light of the above statements, choose the most appropriate answer from the options given below :
The kinked demand curve theory of oligopoly suggests that :
For perfect competition, indicate the correct code for essential conditions from the following :
(a) Large number of buyers and sellers
(b) Perfect knowledge of the market
(c) Homogeneous product for sale
(d) Absence of transportation cost
(e) Freedom of entry and exit of buyers and sellers from the market
(f) Rational Behaviour of buyers and sellers
Code :
Important Questions from Business Competition
- Choose the correct section of the Competition Act, 2002 Which provides that 'No enterprise shall abuse its dominant position' :
- The remedies for the violation of Sections 3 and 4 of the Competition Act have been laid down under
Select the correct code of the following statements being correct or incorrect.
Statement (I) : The ‘law of one price’ states that in competitive markets free of transportation costs and barriers to trade, identical products sold in different countries must sell for the same price when their price is expressed in terms of the same currency.
Statement (II) : An ‘Efficient market’ has no impediments to the free flow of goods and services, such as trade barriers.
- Consider the following statements :
(a) The stage of industry's development (life cycle) cannot influence the nature of competitive rivalry.
(b) As the industry starts to mature in terms of life cycle, rules are rejected, consumer expectations about quality and performance are blurred and industry standards are put for modification.
(c) A major feature of maturing industries is the tendency for competition based on product pricing becoming similar.
(d) In declining industries, only the most efficient firms can earn reasonable profits.
In the light of Industry Life Cycle, which of the above statements are true ?
Codes : The market share data for an industry, comprising five companies, is given below :
Company Market Share (%) A 35 B 25 C 18 D 12 E 10 This industry’s three-firms Herfindahl-Hirschman index shall be :
