2025 · Q71
Which one among the following pairs of type of firm and feature is not correctly matched?
General KnowledgeIndian Economy
- AOligopoly firm Interdependence in decision-making
- BMonopolistic firm Firm is a price setter
- CMonopoly firm Produces an efficient level of output
- DPerfectly competitive firm Produces socially optimum output
Explanation
The question asks for the pair that is NOT correctly matched. A monopoly produces where marginal revenue equals marginal cost — below the socially efficient output (where price equals marginal cost) — creating deadweight loss; 'monopoly produces an efficient level of output' is therefore wrongly matched. Oligopoly (interdependence in decision-making), monopolistic competition (the firm is a price setter) and perfect competition (socially optimum output) are all correctly matched.