Revision Notes for CBSE Class 12 Micro Economics Chapter 6 - Free PDF Download
We know what a Competitive Market is, just to that contrast we have Non-Competitive Markets operating. Non-Competitive markets simply are the Simple Monopoly and Oligopoly Markets.
This market too is included in the list of important market functioning in the business world, therefore added in the CBSE syllabus, so why not to be added in our revision material acknowledging its importance in the business world and for the ease of the students to revise this concept based and important chapter.
FAQs on Non-Competitive Markets Class 12 Notes CBSE Micro Economics Chapter 6 [Free PDF Download]
1. Give Examples of Oligopoly Market and Monopoly Market?
Examples of Oligopoly Markets are – Cement Industry, Automobile Industry etc.
Examples of Monopoly Market are – Rail transportation through Indian Railways.
2. Is Perfect Competition and Non-Competition Market Related?
They are only related in contrast to each other. The relation is created only to study the difference between these two extreme forms of markets, while in the real business world they are no way related or inter-dependent on each other.
3. How will I Present the Graphs with Their Explanation? How will the Notes Help me in this Regard?
Firstly to understand the graph we are required to analyze the occurrence of the curves in the graph, naturally through this one we can write explaining about their phenomenon and thus represent the graphs in connection with their explanation. Also, this revision notes is an add-on benefit as the students do not need to hustle in the textbook pages to know about their explanation, if they only revise from this before the exam they will know the important points to include in their explanation and further structure their answer.
4. What is the Long Run Equilibrium of a Firm in Monopolistic Competition to be Associated with Zero Profit?
The reason why firms in monopolistic competition earns zero profit in the long run is free entry and exit of firms.
If a firm earns supernormal profits in the short run then new entry will take place in the long run. If the firm is incurring losses in the short run, the firm will leave in the long run.
Abnormal profits are zero in the long run.
5. What is the non-competitive market according to Chapter 6 of Class 12 Microeconomics?
A market is called not competitive if the agents that are working in it possess the power of directly or indirectly influencing the price. This is something that can not be possible under perfect competition. Usually, such agents carry market power since they are very little in quantity, they can access proper information and also foresee the interdependence among their own strategies as well as the ones of others. To learn about non-competitive markets for Class 12, visit Vedantu. The solutions are free of cost and also available on Vedantu Mobile app.
6. What are the characteristics of a non-competitive market according to Chapter 6 of Class 12 Microeconomic?
A perfect market is an economic market that does not stand up to the rigorous expectations of the theoretically perfectly competitive market. Perfect competition is clearly abstract, a hypothetical market structure wherein a list of criteria is met. Because every real market exists outside the spectrum of this perfect model of competition, the real markets are classified as non-competitive markets. In imperfect markets, individual buyers, as well as the sellers, are capable of influencing prices, production, etc. and the information regarding products and prices are not fully disclosed. There are also high barriers to entering or exiting the market.
7. What is an example of a non-competitive market according to Chapter 6 of Class 12 Microeconomic?
In a non-competitive market, firms are the price makers. Monopoly can be an example of non-competitive markets since a monopolist refers to a firm that holds the market for itself. For example, if there was just one maker of smartphones across the world, that would be called a monopoly. This means it can raise all prices of smartphones. A complete explanation of the chapter is available on Vedantu.
8. What does monopolistic competition have in common with a monopoly according to Chapter 6 of Class 12 Microeconomic?
In monopoly as well as monopolistic competition, the equilibrium point stands at the equality of the MC and MR while the curve of MC cuts the curve of MR from below.
The demand curve (AR) curves downward towards the right side while the marginal revenue (MR) curve stands below it.
The point of equilibrium stands below the price line (AR).
The demand curve (AR) can not be tangent to the long-run average costs or LAC curve at the minimum point.
The producer becomes the price-maker.
9. List the three different ways in which oligopoly firms may behave according to Chapter 6 of Class 12 Microeconomic.
The three different ways are:
Firms understand that the price war cannot sustain and therefore the primary focus should be to advertise the products while differentiating their products from the competitors.
Few firms can join hands for forming cartels so as to maximise the profits among themselves to capture the majority of the market with the combined effort.
Firms can decide the quantity of the output produced to earn the greatest benefits, to arrive at a mutual agreement with firms to limit their production. To understand more about this chapter, visit Vedantu.