Which of the following statement(s) is/are true for the assumption of Pure Competition ? Select the correct answer from the codes given below : (i) The firm in pure competition is a price taker (ii) The firms produced homogeneous products (iii) This market includes a large number of firms (iv) The firms produce heterogeneous products
(i), (ii) and (iii)
(i), (ii) and (iii) option is correct.
Pure competition, in the Chamberlinian sense, requires three structural assumptions: a very large number of firms, homogeneous products across all firms, and unrestricted entry and exit. Because each seller is atomistic and products are identical, no firm can influence the market price — every firm is a price taker.
Statement (iv) — that firms produce heterogeneous products — contradicts the product-homogeneity postulate; heterogeneous products belong to monopolistic competition. Statements (i), (ii) and (iii) together capture the price-taking, homogeneous-product, many-firm nature of pure competition, so the combination (i)+(ii)+(iii) is the correct set.
Options that pair (iv) with any of the true statements are wrong on the homogeneity criterion, and pairing only two of the three true statements omits an essential feature of the model.
Similar Questions
Arrange the following in descending order according to the extent of expenditure of Union Government in Budget 2023-24.
(i) Central Sector Schemes
(ii) Interest Payments
(iii) States' share of taxes and duties
(iv) Centrally sponsored schemes
What is the point elasticity when price is 12 rupees for the demand function P = 60 – 3q.
Match the following:
List I List II (a) 12th Finance Commission (i) Dr. Vijay Kelkar (b) 13th Finance Commission (ii) Dr. C. Rangarajan (c) 14th Finance Commission (iii) N. K. Singh (d) 15th Finance Commission (iv) Y. V. Reddy Codes : (a) (b) (c) (d)
Why does a firm under perfect competition continue to operate in the long run despite earning only normal/zero profits ?
When the Total Product (TP) is maximum, the Average Product (AP) is _____ and the Marginal Product (MP) is _____ .
What is the short run supply curve of a firm in a perfectly competitive market ?
According to Bergson-Samuelson social welfare function approach, social welfare is maximized when _____ .
In Chamberlin’s alternative approach, why does the excess capacity of a monopolistically competitive firm emerge ?
Which of the following term is more important in welfare economics and in designing government policy ?
To maintain price leadership, a dominant firm must ensure that _____ .
Important Questions from Mixed Topic (MH-SET)
.................... is a client server application that identifies each host on the internet with a unique user-friendly name.
Every OS has a ................ or .......... which primarily resides in the main memory of the computer to perform some of the basic functions of the OS.
(i) Kernel
(ii) Interface
(iii) Nucleus
(iv) Compiler
Codes:
Which of the following are referred to as low level language?
(i) Machine language
(ii) Assembly language
(iii) High level language
(iv) Natural language
Codes:
Match the following:
List I List II (a) New York Public Library (i) Shelv AR (b) Miami University Augmented Research Group (ii) Smart library (c) Oula University Library (iii) Wolf Walk (d) North Carolina State University (iv) Find the future Codes:
Which part of the QR code represents the encoded data?
