ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Monopolistic markets engage in non-price competition because of how the market is designed where the firm dominates the market. In order to sustain in the market, they have to innovate and improve on their product development to appeal to consumers.

Detailed explanation-2: -Non-price competition refers to the efforts on the part of a monopolistic. competitive firm to increase its sales and profits through product variation and. selling expenses instead of a cut in the price of its product.

Detailed explanation-3: -The firms within monopolistic and oligopoly market compete in non-price competition as “the differentiated goods” is one of the main features of both the markets.

Detailed explanation-4: -The correct sequence of the market structure from most to least competitive is perfect competition, imperfect competition, oligopoly and pure monopoly.

Detailed explanation-5: -Monopolistic competition is a type of market structure where many companies are present in an industry, and they produce similar but differentiated products. None of the companies enjoy a monopoly, and each company operates independently without regard to the actions of other companies.