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AaBbCcDd AaBbCcDd AaBbC AaBbCc Heading 1 Heading2 18-3-81 Normal 1 N subtitle Subtle Emp Emphasis Intense Em. Strong Paragraph Styles 37. In most larger cities where there are several grocery stores, the market form is A) monopoly B) oligopoly C) monopolistic competition. D) perfect competition. 38. In the locations where Walmart Supercenters are part of t he grocery market, the market form is A) monopoly. B) oligopoly C) monopolistic competition. D) perfect competition. 39, walmart entered the grocery business in the 1990s, by 2005 it was the grocery chain in the U.S. A) largest B) second largest C) third largest D) fourth largest 40. Walmart has an impact on workers, even in states where they have few stores, because A) their pricing policies compel firms to outsource production to low-cost foreign locations B) their web-stores are dominant. C) they rarely buy from firms in states in which they have stores. D) they buy American only.

Explanation / Answer

37. D) Perfect Competition

Perfect Competition is a form of market structure in which there is free entry and exit of firms and firms are selling homogeneous and identical products in the market. Firms under this form of market are price takers rather than price makers. Industry determines the equilibrium price from the demand and supply curve intersection. Sellers can sell any unit of commodity at that price and firms does not have any price control over the commodity. If one seller try to charge higher price then it will lose all his customers because all firms are selling similar products in every respect like color, shape, brand, etc.

38. B) Oligopoly

Oligopoly is a market structure characterized by the presence of a few large firms who produces homogeneous or differentiated products intensely competing against each other and recognizing interdependence in their decision-making. Under this type of market, prices are normally rigid as firms are afraid of immediate reactions of the rival firms which may start price war. The demand curve facing an oligopoly firm is indeterminate because of high degree of interdependence and uncertainty among oligopolistic firms. The firm does not know how his rival firms react to its decisions. Sales and profits of the firms are affected by the rivals' firm's actions. Example: there are only a few auto-producers in the Indian market. Maruti, Tata, Ford, Fiat are some well-known brand names.

39. a) Largest

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