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Assignment Questions-

I. What is meant by an Imperfect Market? Discuss the features of imperfect markets by comparing and contrasting with perfect competition.

II. Explain Oligopoly and its characteristics.

III. Inferring from the case facts, assess the price rigidity of fruit sellers. Can a single seller increase his sales by offering a discounted price of !40 fora kilogram of mangoes? Illustrate the concept of kinked demand curve.

IV. The caselet highlights the existence of collusion among fruit sellers. What are the market implications of this collusion? Who gains and who loses in price collusion?

V. How do firms compete to achieve Price Leadership under Oligopoly?

VI. Discuss price and output determination under Oligopoly.

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