ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Competition among buyers increases prices and allocates goods and services to those people who are willing and able to pay the most for them. Competition among sellers results in lower costs and prices, higher product quality, and better customer service.

Detailed explanation-2: -There are four types of competition in a free market system: perfect competition, monopolistic competition, oligopoly, and monopoly. Under monopolistic competition, many sellers offer differentiated products-products that differ slightly but serve similar purposes.

Detailed explanation-3: -In a monopolistic market, there is only one firm that dictates the price and supply levels of goods and services. A perfectly competitive market is composed of many firms, where no one firm has market control. In the real world, no market is purely monopolistic or perfectly competitive.

Detailed explanation-4: -In a monopoly market, the seller faces no competition, as he is the sole seller of goods with no close substitute.