UPSC Exam > UPSC Questions > The market structure in which the number of s...
Start Learning for Free
The market structure in which the number of sellers is small and there is interdependence in decision making by the firms is known as
- a)Oligopoly
- b)Monopolistic competition
- c)Monopoly
- d)Perfect competition
Correct answer is option 'A'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
The market structure in which the number of sellers is small and there...
Explanation:
Oligopoly:
- Oligopoly is a market structure in which a small number of firms dominate the market.
- The number of sellers is small in an oligopoly, leading to intense competition among them.
- In an oligopoly, firms often have to consider the reactions of their competitors when making decisions about pricing, marketing strategies, and product development.
- Firms in an oligopoly are interdependent, meaning that the actions of one firm can have a significant impact on the others.
- This interdependence leads to strategic interactions among firms, such as price wars, collusion, and non-price competition.
Comparison with Other Market Structures:
- Monopolistic competition is a market structure with many sellers offering differentiated products. In monopolistic competition, firms have some degree of market power but do not face the same level of interdependence as in an oligopoly.
- Monopoly is a market structure in which a single firm dominates the market and has significant market power. In a monopoly, there is no competition from other firms.
- Perfect competition is a market structure with many sellers offering identical products. In perfect competition, firms are price takers and do not have any market power.
Conclusion:
- In conclusion, oligopoly is characterized by a small number of sellers and interdependence in decision making. Firms in an oligopoly must consider the actions of their competitors when making strategic decisions, leading to complex and dynamic market interactions.
Oligopoly:
- Oligopoly is a market structure in which a small number of firms dominate the market.
- The number of sellers is small in an oligopoly, leading to intense competition among them.
- In an oligopoly, firms often have to consider the reactions of their competitors when making decisions about pricing, marketing strategies, and product development.
- Firms in an oligopoly are interdependent, meaning that the actions of one firm can have a significant impact on the others.
- This interdependence leads to strategic interactions among firms, such as price wars, collusion, and non-price competition.
Comparison with Other Market Structures:
- Monopolistic competition is a market structure with many sellers offering differentiated products. In monopolistic competition, firms have some degree of market power but do not face the same level of interdependence as in an oligopoly.
- Monopoly is a market structure in which a single firm dominates the market and has significant market power. In a monopoly, there is no competition from other firms.
- Perfect competition is a market structure with many sellers offering identical products. In perfect competition, firms are price takers and do not have any market power.
Conclusion:
- In conclusion, oligopoly is characterized by a small number of sellers and interdependence in decision making. Firms in an oligopoly must consider the actions of their competitors when making strategic decisions, leading to complex and dynamic market interactions.
Attention UPSC Students!
To make sure you are not studying endlessly, EduRev has designed UPSC study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in UPSC.
|
Explore Courses for UPSC exam
|
|
Similar UPSC Doubts
Top Courses for UPSCView all
The market structure in which the number of sellers is small and there is interdependence in decision making by the firms is known asa)Oligopolyb)Monopolistic competitionc)Monopolyd)Perfect competitionCorrect answer is option 'A'. Can you explain this answer?
Question Description
The market structure in which the number of sellers is small and there is interdependence in decision making by the firms is known asa)Oligopolyb)Monopolistic competitionc)Monopolyd)Perfect competitionCorrect answer is option 'A'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about The market structure in which the number of sellers is small and there is interdependence in decision making by the firms is known asa)Oligopolyb)Monopolistic competitionc)Monopolyd)Perfect competitionCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The market structure in which the number of sellers is small and there is interdependence in decision making by the firms is known asa)Oligopolyb)Monopolistic competitionc)Monopolyd)Perfect competitionCorrect answer is option 'A'. Can you explain this answer?.
The market structure in which the number of sellers is small and there is interdependence in decision making by the firms is known asa)Oligopolyb)Monopolistic competitionc)Monopolyd)Perfect competitionCorrect answer is option 'A'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about The market structure in which the number of sellers is small and there is interdependence in decision making by the firms is known asa)Oligopolyb)Monopolistic competitionc)Monopolyd)Perfect competitionCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The market structure in which the number of sellers is small and there is interdependence in decision making by the firms is known asa)Oligopolyb)Monopolistic competitionc)Monopolyd)Perfect competitionCorrect answer is option 'A'. Can you explain this answer?.
Solutions for The market structure in which the number of sellers is small and there is interdependence in decision making by the firms is known asa)Oligopolyb)Monopolistic competitionc)Monopolyd)Perfect competitionCorrect answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC.
Download more important topics, notes, lectures and mock test series for UPSC Exam by signing up for free.
Here you can find the meaning of The market structure in which the number of sellers is small and there is interdependence in decision making by the firms is known asa)Oligopolyb)Monopolistic competitionc)Monopolyd)Perfect competitionCorrect answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
The market structure in which the number of sellers is small and there is interdependence in decision making by the firms is known asa)Oligopolyb)Monopolistic competitionc)Monopolyd)Perfect competitionCorrect answer is option 'A'. Can you explain this answer?, a detailed solution for The market structure in which the number of sellers is small and there is interdependence in decision making by the firms is known asa)Oligopolyb)Monopolistic competitionc)Monopolyd)Perfect competitionCorrect answer is option 'A'. Can you explain this answer? has been provided alongside types of The market structure in which the number of sellers is small and there is interdependence in decision making by the firms is known asa)Oligopolyb)Monopolistic competitionc)Monopolyd)Perfect competitionCorrect answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice The market structure in which the number of sellers is small and there is interdependence in decision making by the firms is known asa)Oligopolyb)Monopolistic competitionc)Monopolyd)Perfect competitionCorrect answer is option 'A'. Can you explain this answer? tests, examples and also practice UPSC tests.
|
|
Explore Courses for UPSC exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup