ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -As competition increases, businesses find greater opportunities for success. As the price of a product increases, businesses will produce more of that product if possible. A supply curve and a demand curve are usually parallel.

Detailed explanation-2: -A Ford car dealership is an example of a firm operating in a monopolistic competition. Because in this industry the sellers, as well as the buyers both, are present in huge number. Secondly, the product that they sell, the cars, are similar but not completely identical.

Detailed explanation-3: -Microeconomics studies the decisions of individuals and firms to allocate resources of production, exchange, and consumption.

Detailed explanation-4: -The supply curve demonstrates the relationship between a good’s price and the quantity producers are willing and able to supply. The upward sloping line demonstrates this direct relationship: as the price rises, the quantity supplied increases; as price decreases, quantity supplied decreases.

Detailed explanation-5: -The most common type of economic competition facing most businesses is pure competition. Businesses in monopolistic competition should focus on making their products different from and better than competitors’ products. Each product in a specific market has its own supply and demand curves.