4 Views

Question : Match the characteristics with their market structure:

(a) Marginal Cost (MC) = Market Price(MR)

(b) The firm will tend to set output to earn maximum profit.

Option 1: (a) Pure competition, and (b) Pure monopoly 

Option 2: (a) Pure monopoly, and  (b) Monopolistic competition  

Option 3: (a) Oligopoly, and (b) Monopolistic competition 

Option 4: (a) Pure competition, and (b) Oligopoly 


Team Careers360 24th Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: (a) Pure competition, and (b) Pure monopoly


Solution : The correct options are (a) Pure competition and (b) Pure monopoly .

In Pure competition, firms are price takers, meaning they have no control over the market price. Their Marginal Cost (MC) equals the Market Price(MP) because they produce at the point where MC equals price to maximise profit. Monopolistic competition normally does not have MC = MP. Pure competition does not entail strategic considerations among companies the way oligopoly does.

How to crack SSC CHSL

Candidates can download this e-book to give a boost to thier preparation.

Download Now

Know More About

Related Questions

TOEFL ® Registrations 2024
Apply
Accepted by more than 11,000 universities in over 150 countries worldwide
Manipal Online M.Com Admissions
Apply
Apply for Online M.Com from Manipal University
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books