Under perfect competition, price is determined by:
Options
AFirm
BIndustry
CGovernment
DSociety
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Price Determination in Different MarketsPYQ - May 2018Question 76 of 20
All Questions Correct Answer
✅ Option b — Industry
All Options:
- AFirm
- BIndustry
- CGovernment
- DSociety
About This Chapter: Price Determination
Paper
Paper 4: Business Economics
Weightage
15%
Key Topics
Perfect Competition, Monopoly, Monopolistic, Oligopoly
This high-weightage chapter covers all four market structures: Perfect Competition, Monopoly, Monopolistic Competition, and Oligopoly. Students learn how price and output are determined under each structure, along with key concepts like Price Discrimination, Kinked Demand Curve, and the conditions of equilibrium (MR = MC).
View Official ICAI SyllabusExam Strategy Tip
This chapter carries the highest weightage (~15%). Focus on features of each market, the shape of AR and MR curves, and understand why firms in Perfect Competition are 'Price Takers' while Monopolists are 'Price Makers'.
Key Concepts to Understand
Related Comparison Tables
More Questions from Price Determination in Different Markets
Which of the following is not a characteristic of a "Price Taker"?
Which of the following is not an essential condition of pure competition?
Under which of the following forms of market structure does a firm have no control over the price of its product?
Kinked demand curve hypothesis is designed to explain in context of oligopoly
Price discrimination will be profitable only if the elasticity of demand in different markets is:
In the long run, a firm in a perfectly competitive market earns:
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