Match the following. List-I List-II a. Monopoly 1. Price taker b. Monopolistic competition 2. Homogeneous product’s price maker c. Perfect competition 3. Heterogeneous product d. Oligopoly 4. Price rigidity

a-2, b-3, c-1, d-4
a-1, b-2, c-4, d-3
a-3, b-4, c-2, d-1
a-4, b-1, c-3, d-2

The correct answer is: A. a-2, b-3, c-1, d-4

Monopoly is a market structure in which there is only one seller of a good or service. The monopolist has a great deal of market power and can therefore charge a higher price than would be possible in a competitive market.

Monopolistic competition is a market structure in which there are many sellers of a good or service, but each seller’s product is slightly different from the others. This means that each seller has some market power, but not as much as a monopolist.

Perfect competition is a market structure in which there are many sellers of a good or service, each seller’s product is identical, and there are no barriers to entry or exit. In a perfectly competitive market, the price of the good or service is determined by the market forces of supply and demand.

Oligopoly is a market structure in which there are a few large sellers of a good or service. The oligopolists have a great deal of market power and can therefore influence the price of the good or service.

Price taker is a firm that has no control over the price of its product. The price taker must accept the market price, which is determined by the forces of supply and demand.

Price maker is a firm that has control over the price of its product. The price maker can set the price at any level it chooses, as long as it is able to find buyers at that price.

Homogeneous product is a product that is identical to other products in the market. A homogeneous product has no distinguishing features that would make it stand out from other products.

Heterogeneous product is a product that is different from other products in the market. A heterogeneous product has distinguishing features that would make it stand out from other products.

Price rigidity is a situation in which prices are slow to change. Price rigidity can occur for a number of reasons, including the presence of long-term contracts, the use of price-setting mechanisms, and the existence of menu costs.

I hope this explanation is helpful. Please let me know if you have any other questions.

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