Worksheet: The Theory of the Firm under Perfect Competition - 2 | Economics Class 11 - Commerce PDF Download

Fill in the Blanks

Q1: Market is a situation in which _______ and _______ come into contact for the purchase and sale of goods and services.

Q2: Monopoly market is dominated by a _______ seller who has full control over the price.

Q3: In perfect competition, firms sell _______ products at a uniform price.

Q4: Equilibrium price is the price at which market demand is equal to _______.

Q5: Price ceiling is imposed on necessary commodities like _______ and _______.

Q6: Price floor is set above the _______ price to prevent it from falling.

Q7: Mutual interdependence is a characteristic of the _______ market.

Q8: The presence of close substitutes is absent in the _______ market.

Q9: Market equilibrium signifies equality between _______ and _______ of a commodity.

Q10: Food Availability Decline theory is related to the concept of _______ and _______ analysis.

Assertion and Reason Based 

Q1: Assertion: In a perfect competition market, firms are price takers.
Reason: There is no competition in the market.
(a) Both Assertion and Reason are true, and Reason is the correct explanation of the Assertion.
(b) Both Assertion and Reason are true, but Reason is not the correct explanation of the Assertion.
(c) Assertion is true, but Reason is false.
(d) Both Assertion and Reason are false.

Q2: Assertion: Price ceiling results in excess demand.
Reason: It is imposed on luxury goods.
(a) Both Assertion and Reason are true, and Reason is the correct explanation of the Assertion.
(b) Both Assertion and Reason are true, but Reason is not the correct explanation of the Assertion.
(c) Assertion is true, but Reason is false.
(d) Both Assertion and Reason are false.

Q3: Assertion: Price floor is set above the equilibrium price.
Reason: It creates excess supply in the market.
(a) Both Assertion and Reason are true, and Reason is the correct explanation of the Assertion.
(b) Both Assertion and Reason are true, but Reason is not the correct explanation of the Assertion.
(c) Assertion is true, but Reason is false.
(d) Both Assertion and Reason are false.

Q4: Assertion: Monopolistic competition has perfect knowledge.
Reason: Firms sell closely related but differentiated products.
(a) Both Assertion and Reason are true, and Reason is the correct explanation of the Assertion.
(b) Both Assertion and Reason are true, but Reason is not the correct explanation of the Assertion.
(c) Assertion is true, but Reason is false.
(d) Both Assertion and Reason are false.

Q5: Assertion: Oligopoly has few dominant firms.
Reason: It has a perfectly elastic demand curve.
(a) Both Assertion and Reason are true, and Reason is the correct explanation of the Assertion.
(b) Both Assertion and Reason are true, but Reason is not the correct explanation of the Assertion.
(c) Assertion is true, but Reason is false.
(d) Both Assertion and Reason are false.

Very Short Answer Type Questions

Q1: Define market equilibrium.

Q2: What is the characteristic of a monopoly market?

Q3: Explain price discrimination.

Q4: How does a price ceiling affect the market?

Q5: Define price floor.

Q6: What is the role of market equilibrium in perfect competition?

Q7: Describe a characteristic of monopolistic competition.

Q8: What is mutual interdependence in oligopoly?

Q9: Explain the concept of perfect knowledge.

Q10: How does a drastic fall in food supply impact prices?

Short Answer Type Questions

Q1: Explain the characteristics of a perfect competition market.

Q2: Discuss the features of a monopoly market and its implications.

Q3: Describe the impact of price ceiling on the market and the measures taken to address the shortage.

Q4: What is the concept of price floor, and when is it imposed? Provide an example.

Q5: Explain the role of market equilibrium in a perfectly competitive market and how it affects prices.

Q6: Compare and contrast monopolistic competition with perfect competition, highlighting their differences.

Q7: Discuss the concept of mutual interdependence in an oligopoly market and its implications.

Q8: Explain the Food Availability Decline theory in terms of demand-supply analysis and its consequences.

Long Answer Type Questions

Q1: Describe the various types of markets and their respective features, with a focus on perfect competition and monopoly markets.

Q2: Analyze the impact of government intervention through price ceilings and price floors on the market, providing examples.

Q3: Explain the concept of market equilibrium in detail and its significance in ensuring stable prices and quantities in a perfect competition market.

Q4: Discuss the potential consequences of a drastic fall in food supply, using the Food Availability Decline theory as a framework.