With reference to the different types of markets, compare pure competition with monopolistic competition
What will be an ideal response?
Under pure competition, the market consists of many buyers and sellers trading in a uniform commodity. No single buyer or seller has much effect on the going market price. Under monopolistic competition, the market consists of many buyers and sellers trading over a range of prices rather than a single market price. A range of prices occurs because sellers can differentiate their offerings to buyers.
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Which of the following is an economic system in which private individuals and corporations own the means of production and, motivated by the desire for profit; compete in free markets under conditions of limited restraint by government?
a) Utilitarianism b) Capitalism c) Socialism d) Fascism
Myundia Motors now sells 1 million units at ¥3,529 per unit. Fixed operating costs are ¥1,290 million and variable operating costs are ¥1,500 per unit. If the company pays ¥410 million in interest, the levels of sales at the operating breakeven and breakeven points are, respectively
a. ¥1,500,000,000 and ¥2,257,612,900. b. ¥2,243,671,760 and ¥2,956,776,737. c. ¥2,975,148,800 and ¥3,529,000,000.