FREQUENTLY ASKED QUESTIONS – CBSE BOARD EXAMINATION
One Mark Questions (1M)
- In which market form can a firm not influence the price of the product?
- What is equilibrium price?
- Under which market form a firm is a price taker?
- Define market equilibrium.
- Define Monopoly.
- State one feature of Oligopoly.
Three Marks Questions (3M)
- Why is the number of firms small in an Oligopoly Market? Explain.
- Explain three features of Monopoly.
- How is equilibrium price of a commodity affected by a decrease in demand?
- Why is the demand curve more elastic under monopolistic competition than under monopoly? Explain.
- Explain the feature ‘differentiated product’ of a market with monopolistic competition.
- Explain the effect of ‘large number of buyers and sellers’ in a perfectly competitive firm.
Four Marks Questions (4 M)
- Distinguish between Monopoly and Perfect Competition.
- Draw the Average Revenue Curve of a firm under a) Monopoly and b) Perfect Competition. Explain the difference in these curves, if any.
- Show with the help of a diagram the effects of an increase in demand for a commodity on its equilibrium price and quantity.
- Explain with the help of a diagram the determination of price of a commodity under perfect competition.
- Explain the concept of equilibrium price with the help of market demand and supply schedules.
Six Marks Questions (6 M)
- Given the market equilibrium of a good. What are the effects of Simultaneous increase in both demand and supply of that good on its equilibrium price and quantity?
- Distinguish between perfect competition and monopoly. Why is the demand curve facing a firm under perfect competition perfectly elastic?
- Explain briefly the three feature of perfect competition.
- Explain the chain of effects on demand, supply and price of a commodity caused by a leftward shift of the demand curve. Use diagram.
- Explain three feature of Monopolistic Competition