NTA UGC NET - Commerce - UNIT 03: BUSINESS ECONOMICS (PART 02)

 

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UNIT 03

BUSINESS ECONOMICS

 PART 02 

 

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MCQ 01: Match the following

 

 

 

ANSWER

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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MCQ 02:A market in which only two firms exist is
 

a) Oligopoly
b) Duopoly
c) Duopsony
d) Oligopsony

 

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OLIGOPOLY
 

small number of large firms

 

firms sell either identical or differentiated products

 

Significant barriers to entry.

Eg. automobiles, cement, steel, aluminium, etc

 

Oligopolies are price setters

 

Mutual interdependence 

 

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Duopoly 

 

only two sellers

 

Visa and Mastercard

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Duopsony 

 

Only two large buyers for a specific product or service.

Eg. Petrol buyers in India ( HPCL and BPCL)

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Oligopsony 

 

 

small number of buyers exists for a product 

 

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Monopoly 

 

 

Price maker

 

No close competing substitute

 

The cross elasticity of demand for the product is either zero or even negative

 

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Monopsony

single buyer

eg. Govt contractors 

 

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Perfect competition 

 

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Pure completion

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Monopolistic competition 

 

 

    Large number of buyers and sellers

 

    Independent price policy 

 

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