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The Theory Of The Firm Under Perfect Competition
Question
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Give one example each of government direct intervention and indirect intervention in market mechanism.

Answer

Example of government's indirect intervention is levying of taxes and granting of subsidies which indirectly change the market price. Fixing directly the prices of a product by the government is an example of direct intervention, e.g., control price and support price.

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Some More Questions From The Theory Of The Firm Under Perfect Competition Chapter

What is perfect competition?  

Name the market structure in which firm is itself an industry.

 Define the term market as used in economics.

What is meant by monopolistic competition?

What are selling costs?

Define homogeneous product.

What is meant by differentiated product?

 Define perfect competition.

 Is the seller under perfect competition a price maker or a price taker? 

Define monopoly.