8 Most VSAQ’s of Market Analysis Chapter in Inter 1st Year Economics (TS/AP)
2 Marks
VSAQ-1 : Define Market.
A market is a place where buyers and sellers come together to purchase and sell commodities at retail or wholesale prices. It is essentially a meeting point where goods and services are exchanged between individuals or businesses.
VSAQ-2 : What is Duopoly?
Duopoly refers to a market situation in which there are only two producers or sellers of a particular product or service. It is a type of oligopoly, characterized by a small number of dominant firms in the market. In a duopoly, the two firms often have a significant influence on market prices and competition, and their actions can have a substantial impact on the industry.
VSAQ-3 : Define Monopoly. (OR) Write a note on monopoly.
Monopoly: A market structure with a single seller having complete control over a product or service, leading to higher prices, reduced output, and often subject to government regulations for consumer protection.
VSAQ-4 : Production differentiation. (OR) Product discrimination.
Product differentiation is a marketing strategy employed by firms to set their products apart from competitors. This differentiation is based on factors such as branding, quality, and features, with the goal of attracting customers and establishing brand loyalty.
VSAQ-5 : What are the selling costs? (OR) Explain selling costs.
Selling costs encompass expenses that firms incur to promote sales through various activities, including advertising and publicity.
VSAQ-6 : Price Discrimination
Price discrimination takes place when a monopolist charges varying prices for the same product or service within the market.
VSAQ-7 : Give a note on the time based market.
Time-based markets can be categorized into three types based on the time period:
- Very Short Period Market: In this market, the supply of goods cannot be changed in response to changes in demand. Examples include goods that are perishable or have an immediate expiration date.
- Short Period Market: In this market, the supply of goods can be adjusted in the short run but is relatively fixed in the immediate term. Firms can vary their production levels to some extent but cannot make significant changes in a short period.
- Long Period Market: In this market, firms have the flexibility to adjust their production levels and supply over an extended period. Production can be altered to meet changes in demand, and new firms can enter or exit the market as needed.
VSAQ-8 : What is monopolistic competition? (OR) Monopolistic competition
Monopolistic competition is a market structure characterized by numerous firms offering similar goods, but each firm seeks to differentiate its products through branding, marketing, or small variations. This competition falls between perfect competition and monopoly on the market structure spectrum. Firms in monopolistic competition engage in advertising and product differentiation to attract customers and gain a competitive edge.