{"id":58803,"date":"2024-04-16T01:25:56","date_gmt":"2024-04-16T01:25:56","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=58803"},"modified":"2024-04-16T01:25:56","modified_gmt":"2024-04-16T01:25:56","slug":"in-which-market-the-firm-cannot-determine-the-price","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/in-which-market-the-firm-cannot-determine-the-price\/","title":{"rendered":"In which market the firm cannot determine the price"},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6a976af9ca53b\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"false\">\r\n                    Perfect competition                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"false\">\r\n                    Monopoly                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"false\">\r\n                    Monopolistic competition                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"true\">\r\n                    Oligopolistic                <\/div>\r\n                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is: <strong>D. Oligopolistic<\/strong><\/p>\n<p>In an oligopolistic market, there are a few large firms that dominate the market. These firms have a lot of power over the price of their products, and they can often set prices that are higher than they would be in a more competitive market.<\/p>\n<p>In a perfect competitive market, there are many small firms that produce identical products. These firms have no power over the price of their products, and they must accept the market price.<\/p>\n<p>In a monopoly market, there is only one firm that produces a good or service. This firm has complete control over the price of its product, and it can set prices as high as it wants.<\/p>\n<p>In a monopolistically competitive market, there are many firms that produce similar but not identical products. These firms have some power over the price of their products, but they cannot set prices as high as a monopoly firm.<\/p>\n<p>Here is a more detailed explanation of each market structure:<\/p>\n<ul>\n<li><strong>Perfect competition<\/strong> is a market structure in which there are many small firms that produce identical products. The firms have no power over the price of their products, and they must accept the market price. This is because the products of the firms are so similar that consumers are indifferent between them. As a result, the firms cannot charge a price higher than the market price, because consumers would <div class=\"telegram-channel-container\">\r\n        <a href=\"https:\/\/t.me\/pscnotes2025\" target=\"_blank\" class=\"telegram-channel-button\">\r\n            <span class=\"telegram-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 496 512\">\r\n                    <path fill=\"white\" d=\"M248,8C111,8,0,119,0,256s111,248,248,248s248-111,248-248S385,8,248,8z M362,177L320,367c-3,14-10,18-20,14l-56-41l-27,26 c-3,3-5,5-10,5l4-63L323,196c5-5-1-7-8-3l-98,62l-42-13c-9-3-10-9,2-14l162-63C351,160,365,164,362,177z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Join Our Telegram Channel\r\n        <\/a>\r\n    <\/div> simply buy from another firm that is selling the product at the market price.<\/li>\n<li><strong>Monopoly<\/strong> is a market structure in which there is only one firm that produces a good or service. This firm has complete control over the price of its product, and it can set prices as high as it wants. This is because there are no other firms that produce the same good or service, so consumers have no choice but to buy from the monopoly firm.<\/li>\n<li><strong>Monopolistic competition<\/strong> is a market structure in which there are many firms that produce similar but not identical products. These firms have some power over the price of their products, but they <div class=\"youtube-subscribe-container\">\r\n        <a href=\"https:\/\/www.youtube.com\/channel\/UCNHT8lW-JmLC68rjBfZhdkg?sub_confirmation=1\" target=\"_blank\" class=\"youtube-subscribe-button\">\r\n            <span class=\"youtube-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 576 512\">\r\n                    <path d=\"M549.7 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Subscribe on YouTube\r\n        <\/a>\r\n    <\/div> cannot set prices as high as a monopoly firm. This is because the products of the firms are not identical, so consumers have some choice between them. As a result, the firms can charge a price that is higher than the marginal cost of production, but they cannot charge a price that is too high, because consumers would simply buy from another firm that is selling a similar product at a lower price.<\/li>\n<li><strong>Oligopoly<\/strong> is a market structure in which there are a few large firms that dominate the market. These firms have a lot of power over the price of their products, and they can often set prices that are higher than they would be in a more competitive market. This is because the firms are large enough to have a significant impact on the market price, and they are also able to collude with each other to set prices.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Join Our Telegram Channel Subscribe on YouTube<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>In which market the firm cannot determine the price<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/in-which-market-the-firm-cannot-determine-the-price\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta 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