Question
Identify the market form for two sellers of good X and good Y from the following table. Give reasons.
|
Output sold (units) |
Price of X (र) |
Price of Y (र) |
|
150 |
15 |
25 |
|
200 |
14 |
25 |
|
300 |
12 |
25 |
Solution
Market for good X is either monopoly or monopolistic competition as seller has sold more units by reducing the price whereas market for good Y is perfectly competitive because seller has sold more units of the good at the same price.
