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Direction: In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:
Assertion (A): The vegetable market is a perfect example of perfect competition market.
Reason (R): The marketers have no control over the prices of the product.
- a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).
- b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).
- c)Assertion (A) is true, but Reason (R) is false.
- d)Assertion (A) is false, but Reason (R) is true.
Correct answer is option 'A'. Can you explain this answer?
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Verified Answer
Direction: In the following questions, a statement of Assertion (A) i...
Perfect competition occurs when all companies sell identical products, market share does not influence price, companies are able to enter or exit without barrier, buyers have “perfect” or full information, and companies cannot determine prices. For example consider a farmers market where each vendor sells the same type of jam. There is little differentiation between each of their products, as they use the same recipe, and they each sell them at an equal price. At the same time, sellers are few and free to participate in the market without any barrier. Buyers, in this case, would be fully knowledgeable of the product's recipe, and any other information relevant to the good.
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Direction: In the following questions, a statement of Assertion (A) i...
Assertion (A): The vegetable market is a perfect example of perfect competition market.
Reason (R): The marketers have no control over the prices of the product.
Explanation:
In a perfect competition market, there are several key characteristics that must be present. Let's evaluate whether the vegetable market satisfies these characteristics.
1. Large number of buyers and sellers:
- The vegetable market typically consists of numerous buyers and sellers. There are multiple farmers and vendors selling their produce, and many consumers purchasing vegetables. Therefore, this characteristic is fulfilled.
2. Homogeneous product:
- In a perfect competition market, the product being sold is homogeneous, which means it is identical across different sellers. In the vegetable market, the same type of vegetables are sold by different farmers. So, this characteristic is also fulfilled.
3. Perfect information:
- In a perfect competition market, buyers and sellers have access to perfect information about prices and quality of the product. In the vegetable market, buyers can easily compare prices and quality among different vendors. So, this characteristic is also fulfilled.
4. Easy entry and exit:
- In a perfect competition market, there are no barriers to entry or exit. In the vegetable market, any farmer can enter the market by growing vegetables and any vendor can exit the market if they choose to do so. So, this characteristic is fulfilled as well.
5. No control over prices:
- In a perfect competition market, no individual buyer or seller has control over the prices. Prices are determined by market forces of supply and demand. In the vegetable market, individual farmers and vendors have no control over the prices. They have to accept the prevailing market price for their produce. Therefore, this characteristic is fulfilled.
Conclusion:
Both the Assertion (A) and Reason (R) are true, and the Reason (R) is the correct explanation of the Assertion (A). The vegetable market satisfies all the characteristics of a perfect competition market, including the lack of control over prices by individual marketers.
Reason (R): The marketers have no control over the prices of the product.
Explanation:
In a perfect competition market, there are several key characteristics that must be present. Let's evaluate whether the vegetable market satisfies these characteristics.
1. Large number of buyers and sellers:
- The vegetable market typically consists of numerous buyers and sellers. There are multiple farmers and vendors selling their produce, and many consumers purchasing vegetables. Therefore, this characteristic is fulfilled.
2. Homogeneous product:
- In a perfect competition market, the product being sold is homogeneous, which means it is identical across different sellers. In the vegetable market, the same type of vegetables are sold by different farmers. So, this characteristic is also fulfilled.
3. Perfect information:
- In a perfect competition market, buyers and sellers have access to perfect information about prices and quality of the product. In the vegetable market, buyers can easily compare prices and quality among different vendors. So, this characteristic is also fulfilled.
4. Easy entry and exit:
- In a perfect competition market, there are no barriers to entry or exit. In the vegetable market, any farmer can enter the market by growing vegetables and any vendor can exit the market if they choose to do so. So, this characteristic is fulfilled as well.
5. No control over prices:
- In a perfect competition market, no individual buyer or seller has control over the prices. Prices are determined by market forces of supply and demand. In the vegetable market, individual farmers and vendors have no control over the prices. They have to accept the prevailing market price for their produce. Therefore, this characteristic is fulfilled.
Conclusion:
Both the Assertion (A) and Reason (R) are true, and the Reason (R) is the correct explanation of the Assertion (A). The vegetable market satisfies all the characteristics of a perfect competition market, including the lack of control over prices by individual marketers.
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Community Answer
Direction: In the following questions, a statement of Assertion (A) i...
Perfect example of perfect competition market is vegetable market where their are large no of buyers and sellers of homogeneous product . In pcm price is determined by market forces of demand and supply so price is not controlled by marketers but it's demand and supply .hope u get the answer
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Direction: In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): The vegetable market is a perfect example of perfect competition market.Reason (R): The marketers have no control over the prices of the product.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'A'. Can you explain this answer?
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Direction: In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): The vegetable market is a perfect example of perfect competition market.Reason (R): The marketers have no control over the prices of the product.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'A'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Direction: In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): The vegetable market is a perfect example of perfect competition market.Reason (R): The marketers have no control over the prices of the product.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Direction: In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): The vegetable market is a perfect example of perfect competition market.Reason (R): The marketers have no control over the prices of the product.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'A'. Can you explain this answer?.
Direction: In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): The vegetable market is a perfect example of perfect competition market.Reason (R): The marketers have no control over the prices of the product.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'A'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Direction: In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): The vegetable market is a perfect example of perfect competition market.Reason (R): The marketers have no control over the prices of the product.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Direction: In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): The vegetable market is a perfect example of perfect competition market.Reason (R): The marketers have no control over the prices of the product.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'A'. Can you explain this answer?.
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