Explain one main feature of each: (a) Monopsony market. (b) Monopoly

1.	Explain one main feature of each: (a) Monopsony market. (b) Monopoly market.
Answer» (a) Single Buyer: Monoposony is a market structure where there is only one buyer of a commodity, service or input. It is a case of only one firm purchasing the entire product or factor service. (b) Single Seller: Monopoly is a market situation where there is only one seller or producer, called monopolist of a commodity. It is a case of one firm or producer controlling the supply of the product. Since there is only one seller, any change in the amount of output produced by the monopolist would have significant influence over the market price. Because there is only one firm in monopoly, therefore the difference between the firm and the industry disappears.

Explain one main feature of each: (a) Monopsony market. (b) Monopoly market.

Answer»

(a) Single Buyer: Monoposony is a market structure where there is only one buyer of a commodity, service or input. It is a case of only one firm purchasing the entire product or factor service.

(b) Single Seller: Monopoly is a market situation where there is only one seller or producer, called monopolist of a commodity. It is a case of one firm or producer controlling the supply of the product. Since there is only one seller, any change in the amount of output produced by the monopolist would have significant influence over the market price. Because there is only one firm in monopoly, therefore the difference between the firm and the industry disappears.

Discussion

No Comment Found

Related InterviewSolutions

A plant is kept in a dark cupboard for about 48 hours before conducting any experiment on photosynthesis to :(A) Remove starch from the plant. (B) Ensure that starch is not translocated from the leaves. (C) Remove chlorophyll from the leaf of the plant. (D) Remove starch from the experimental leaf.
The producer of Lime Fresh’ tea introduces ‘Buy one Get one’ scheme on all the products of ‘Lime Fresh’. Identify the promotional strategy’ used by the producer. State any one objective that could be met by this strategy.
A stringed musical instrument, such as the sitar,is provided with a number of wires of different thicknesses. explain the reason for this.
Mention whether the following would result in inflow, outflow or no flow of cash :(i) Issue of fully paid Bonus Shares (ii) Cash withdrawn from Bank
State with reason whether the following would result in inflow, outflow or no flow of cash :(i) Charging depreciation on furniture. (ii) Cash withdrawn for bank for office use.
Give four points of anatomical differences between a monocot stem and a dicot stem.
State the conditions required for total internal reflection of light to take place.
State the conditions required for total internal reflection of light to take place.
(i) When does a ray of light falling on a lens pass through it undeviated ? (ii) Which lens can produce a real and inverted image of an object ?
When acoustic resonance takes place a loud sound is heard. Why does this happen ? Explain.