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Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?
Assertion (A): The MRTP Act is enacted to prevent the monopoly in the market.
Reason (R): Monopoly is not good for any economy.
- a)Both A and R are true and R is the correct explanation of A
- b)Both A and R are true, but R is not the correct explanation of A
- c)A is true, but R is false
- d)A is false, but R is true
Correct answer is option 'A'. Can you explain this answer?
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Direction: In the questions given below are two statements labelled a...
Monopolistic and Restrictive Trade Practice under MRTP Act, 1969. The Monopolistic and Restrictive Trade Practices Act, 1969, was enacted. To ensure that the operation of the economic system does not result in the concentration of economic power in hands of few, To provide for the control of monopolies.
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Direction: In the questions given below are two statements labelled a...
Assertion: The MRTP Act is enacted to prevent monopoly in the market.
Reason: Monopoly is not good for any economy.
The correct answer is option A, which states that both the assertion and reason are true, and the reason is the correct explanation of the assertion.
Explanation:
MRTP Act:
- The MRTP Act, also known as the Monopolies and Restrictive Trade Practices Act, was enacted in India in 1969.
- The primary objective of the MRTP Act was to prevent the concentration of economic power and curb monopolistic and restrictive trade practices.
- It aimed to promote fair competition, protect consumers' interests, and ensure a level playing field for all market participants.
Assertion (A): The MRTP Act is enacted to prevent monopoly in the market.
- This assertion is true. The MRTP Act was specifically enacted to prevent the creation and abuse of monopolies in the market.
- Monopoly refers to a situation where a single firm or a group of firms have control over the supply of a particular product or service, giving them the power to set prices and limit competition.
- The MRTP Act aimed to prevent the establishment of such monopolies, which can lead to market distortions, unfair practices, and exploitation of consumers.
Reason (R): Monopoly is not good for any economy.
- This reason is also true. Monopoly is generally considered detrimental to an economy for several reasons:
- Lack of competition: Monopolies restrict competition, leading to reduced innovation, lower quality of products or services, and limited choices for consumers.
- Higher prices: Monopolistic firms can set prices at their discretion, often leading to higher prices for consumers.
- Inefficiency: Monopolies may lack the motivation to be efficient and innovative since they face limited competition.
- Barriers to entry: Monopolies can create barriers to entry for new firms, limiting market entry and stifling entrepreneurship.
Explanation of the Reason:
- The reason provided in the statement correctly explains why the MRTP Act was enacted.
- Monopolies are generally considered detrimental to economies due to the negative impacts mentioned above.
- By preventing the creation and abuse of monopolies, the MRTP Act aimed to promote healthy competition, protect consumer interests, and foster economic growth.
Therefore, both the assertion and reason are true, and the reason provides a correct explanation of the assertion.
Reason: Monopoly is not good for any economy.
The correct answer is option A, which states that both the assertion and reason are true, and the reason is the correct explanation of the assertion.
Explanation:
MRTP Act:
- The MRTP Act, also known as the Monopolies and Restrictive Trade Practices Act, was enacted in India in 1969.
- The primary objective of the MRTP Act was to prevent the concentration of economic power and curb monopolistic and restrictive trade practices.
- It aimed to promote fair competition, protect consumers' interests, and ensure a level playing field for all market participants.
Assertion (A): The MRTP Act is enacted to prevent monopoly in the market.
- This assertion is true. The MRTP Act was specifically enacted to prevent the creation and abuse of monopolies in the market.
- Monopoly refers to a situation where a single firm or a group of firms have control over the supply of a particular product or service, giving them the power to set prices and limit competition.
- The MRTP Act aimed to prevent the establishment of such monopolies, which can lead to market distortions, unfair practices, and exploitation of consumers.
Reason (R): Monopoly is not good for any economy.
- This reason is also true. Monopoly is generally considered detrimental to an economy for several reasons:
- Lack of competition: Monopolies restrict competition, leading to reduced innovation, lower quality of products or services, and limited choices for consumers.
- Higher prices: Monopolistic firms can set prices at their discretion, often leading to higher prices for consumers.
- Inefficiency: Monopolies may lack the motivation to be efficient and innovative since they face limited competition.
- Barriers to entry: Monopolies can create barriers to entry for new firms, limiting market entry and stifling entrepreneurship.
Explanation of the Reason:
- The reason provided in the statement correctly explains why the MRTP Act was enacted.
- Monopolies are generally considered detrimental to economies due to the negative impacts mentioned above.
- By preventing the creation and abuse of monopolies, the MRTP Act aimed to promote healthy competition, protect consumer interests, and foster economic growth.
Therefore, both the assertion and reason are true, and the reason provides a correct explanation of the assertion.
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Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?Assertion (A): The MRTP Act is enacted to prevent the monopoly in the market.Reason (R): Monopoly is not good for any economy.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true, but R is not the correct explanation of Ac)A is true, but R is falsed)A is false, but R is trueCorrect answer is option 'A'. Can you explain this answer?
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Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?Assertion (A): The MRTP Act is enacted to prevent the monopoly in the market.Reason (R): Monopoly is not good for any economy.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true, but R is not the correct explanation of Ac)A is true, but R is falsed)A is false, but R is trueCorrect 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 questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?Assertion (A): The MRTP Act is enacted to prevent the monopoly in the market.Reason (R): Monopoly is not good for any economy.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true, but R is not the correct explanation of Ac)A is true, but R is falsed)A is false, but R is trueCorrect 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 questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?Assertion (A): The MRTP Act is enacted to prevent the monopoly in the market.Reason (R): Monopoly is not good for any economy.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true, but R is not the correct explanation of Ac)A is true, but R is falsed)A is false, but R is trueCorrect answer is option 'A'. Can you explain this answer?.
Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?Assertion (A): The MRTP Act is enacted to prevent the monopoly in the market.Reason (R): Monopoly is not good for any economy.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true, but R is not the correct explanation of Ac)A is true, but R is falsed)A is false, but R is trueCorrect 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 questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?Assertion (A): The MRTP Act is enacted to prevent the monopoly in the market.Reason (R): Monopoly is not good for any economy.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true, but R is not the correct explanation of Ac)A is true, but R is falsed)A is false, but R is trueCorrect 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 questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?Assertion (A): The MRTP Act is enacted to prevent the monopoly in the market.Reason (R): Monopoly is not good for any economy.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true, but R is not the correct explanation of Ac)A is true, but R is falsed)A is false, but R is trueCorrect answer is option 'A'. Can you explain this answer?.
Solutions for Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?Assertion (A): The MRTP Act is enacted to prevent the monopoly in the market.Reason (R): Monopoly is not good for any economy.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true, but R is not the correct explanation of Ac)A is true, but R is falsed)A is false, but R is trueCorrect answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
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