Question map
Match List-I with List-II and select the correct answer using the code given below the Lists: List-I (Market structure) A) Perfect B) Monopoly C) Monopolistic D) Oligopoly List-II (Characteristic) 1) Only one competition producer selling one commodity 2) Few producers selling similar or almost similar products 3) Many producers Competition selling Differentiated products 4) Many producers selling similar products Code:
Explanation
The classification of market structures is based on the number of producers and product nature. Perfect competition (A) is characterized by many producers selling identical or similar products where firms are price-takers [1]. A monopoly (B) exists when there is only one producer selling a unique commodity with no close substitutes. Monopolistic competition (C) involves many producers selling differentiated products that are close substitutes but not identical. Finally, an oligopoly (D) is defined by a few large producers selling either similar or differentiated products, where the actions of one firm significantly impact others. Matching these characteristics: A-4 (Many/Similar), B-1 (One/One commodity), C-3 (Many/Differentiated), and D-2 (Few/Similar). This corresponds to option 2.
Sources
- [1] Microeconomics (NCERT class XII 2025 ed.) > Chapter 4: The Theory of the Firm under Perfect Competition > 4.1 PERFECT COMPETITION: DEFINING FEATURES > p. 53