Match List-I with List-II and select the correct answer using the code given below the Lists :
| List-I (Market structure) | List-II (Characteristic) |
|---|---|
| A. Perfect competition | 1. Only one producer selling one commodity |
| B. Monopoly | 2. Few producers selling similar or almost similar products |
| C. Monopolistic competition | 3. Many producers selling differentiated products |
| D. Oligopoly | 4. Many producers selling similar products |
Code :
A 4, B 3, C 1, D 2
A 4, B 1, C 3, D 2
A 2, B 1, C 3, D 4
A 2, B 3, C 1, D 4
Answer is Right!
Answer is Wrong!
This question was previously asked in
UPSC CDS-1 – 2020
– Perfect competition (A): Characterised by many producers selling identical or similar products (homogeneous) and free entry/exit. This matches Characteristic 4 (Many producers selling similar products).
– Monopoly (B): Characterised by a single producer selling a unique product with high barriers to entry. This matches Characteristic 1 (Only one producer selling one commodity).
– Monopolistic competition (C): Characterised by many producers selling differentiated products and relatively easy entry/exit. This matches Characteristic 3 (Many producers selling differentiated products).
– Oligopoly (D): Characterised by a few producers selling similar or differentiated products with significant barriers to entry. This matches Characteristic 2 (Few producers selling similar or almost similar products).
Thus, the correct match is A-4, B-1, C-3, D-2.
– Monopoly: Single firm, unique product, high barriers.
– Monopolistic competition: Many firms, differentiated product, low barriers.
– Oligopoly: Few firms, homogeneous or differentiated product, high barriers.