ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The answer is: Other car makers will also lower the price of their cars. Explanation: The market for new cars is extremely competitive and very segmented. Car companies are continuously offering new models and technologies, and offering discounts, promotions, low interest car leases, etc.

Detailed explanation-2: -An oligopoly will allow more than one honcho to co-exist, and a monopolistic competition will allow several players to enter into the market, while a monopoly will essentially be the one that stands apart and rules the entire demand and supply chain in the particular field of selection.

Detailed explanation-3: -A monopoly is the type of imperfect competition where a seller or producer captures the majority of the market share due to the lack of substitutes or competitors. A monopolistic competition is a type of imperfect competition where many sellers try to capture the market share by differentiating their products.

Detailed explanation-4: -An oligopoly refers to a market with only a few sellers. Monopolistic competition refers to situations where there are many sellers, but the products are highly differentiated. There are several important nuances to explore between these types of markets.

Detailed explanation-5: -A reduction in competition across many markets in an economy could lead to higher prices generally. Inflation, on the other hand, does not measure whether prices are high. 3 Instead, it typically measures the annual percentage change in the average price level of an economy.