What is the answer of Q11 both the parts???
Q11. ' Make in India ' campaign may lead to oligopolistic control of the market. Explain how.
Or
Form of the market changes with change in the degree of control over price. Explain.
Dear Student,
Make in India campaign encourages to do production in India with Indian resources and by using Indian labour.
Companies doing Make in India will lead to monopolistic market because there are few big sellers in this field. Not every one can change its production process and companies doing production in India will be few but will be very large in size.
These companies have to depend on their competitors as all the companies are using same raw material and factors of production and they have to be dependent on them to decide the level of output or for price determination.
These can form cartels also earn more profits and can convert into cooperative olipogoly.
FORM OF MARKET CHANGES WITH THE DEGREE OF CONTROL OVER PRICE:
Every form of market have different degree of control of price.As in Perfect competition there is no control over the price of the goods as this market is a price taker and prices are determined by the market forces of demand and supply.
In monopoly market, firms are the price makers and they have full control over their price as there is only seller and no. of buyers.
In monopolistic market there is partial control over price of the goods and in Oligopolist markets ,firms have to be dependent on other firms to decide about the price and output of their firm.
So, form of market changes with the different degree of control over price.
Hope this information will clear your doubts on this topic.
If you have any more doubts just ask on the forum and our experts will try to help you out as soon as possible.
Regards