Class 11 Economics Important Chapter 10 Forms of Market Structure

Class 11 Economics Important Chapter 10 Forms of Market Structure Solutions English Medium As Per AHSEC New Syllabus to each chapter is provided in the list so that you can easily browse through different chapters ASSEB Class 11 Economics Important Solutions and select need one. AHSEC Class 11 Economics Additional Notes English Medium Download PDF. HS 1st Year Economics Important Solutions in English.

Class 11 Economics Important Chapter 10 Forms of Market Structure

Also, you can read the NCERT book online in these sections Solutions by Expert Teachers as per Central Board of Secondary Education (CBSE) Book guidelines. Assam AHSEC Board Class 11 Economics Additional Question Answer are part of All Subject Solutions. Here we have given HS 1st Year Economics Important Notes in English for All Chapters, You can practice these here.

Forms of Market Structure

Chapter: 10

PART – A : MICROECONOMICS

IMPORTANT QUESTION AND ANSWER

Short Type Question and Answer:

1. What is meant by market structure?

Ans: Market structure refers to the type of market in which firms operate, determined by factors like number of buyers/sellers, nature of product, market knowledge, and entry/exit freedom.

2. Why is the existence of a specific place not essential for a market in economics?

Ans: Because in economics, a market refers to the network of buyers and sellers of a commodity, and transactions can occur without a physical marketplace.

3. What ensures that only one price prevails in a perfectly competitive market?

Ans: Homogeneous products and free competition ensure one uniform price.

4. Why is the demand curve of a perfectly competitive firm perfectly elastic?

Ans: Because the firm is a price taker and can sell any quantity at the prevailing market price.

5. In perfect competition, what is the relationship between AR and MR?

Ans: AR is constant and equal to MR.

6. What happens to the TR curve of a competitive firm as output increases?

Ans: TR increases at a constant rate and forms a positively sloped straight line.

7. Why does a monopoly firm face a downward-sloping demand curve?

Ans: Because it can sell more only by lowering the price of its product.

8. Why is MR less than AR in monopoly?

Ans: Because to sell more units, the monopolist must reduce price, lowering the additional revenue from each extra unit.

9. What is the cross elasticity of demand in pure monopoly?

Ans: It is zero, as there are no close substitutes for the product.

10. Give one example of price discrimination in monopoly.

Ans: Electricity Boards charging lower rates for agricultural use than for domestic use.

11. What is the unique feature that differentiates monopolistic competition from perfect competition?

Ans: Product differentiation.

12. Why are selling costs high in monopolistic competition?

Ans: Because firms spend heavily on advertising and promotion to differentiate their products and attract customers.

13. What type of competition is common in monopolistic competition apart from price competition?

Ans: Non-price competition, such as product variation and advertising.

14. In the long run under monopolistic competition, what level of profit do firms earn?

Ans: Only normal profits.

15. In terms of price and output, how do monopoly and monopolistic competition compare to perfect competition?

Ans: Both have lower output and higher prices compared to perfect competition.