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The Theory Of The Firm Under Perfect Competition
Question
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What do you understand by (i) Control price, and (ii) Support price?

Answer

(i) When government fixes price of a product lower than the equilibrium price to help the consumers, it is called control price.

(ii) When government fixes the price of a product higher than the equilibrium price to help the producers, it is called support price.

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

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.  

Define market equilibrium.