Question : Assertion: An oligopoly market structure is characterized by a few large firms dominating the market.
Reason: Oligopolistic firms tend to engage in non-price competition, such as advertising and product differentiation.
Option 1: Both the assertion and reason are true, and the reason is a correct explanation of the assertion.
Option 2: Both the assertion and reason are true, but the reason is not a correct explanation of the assertion.
Option 3: The assertion is true, but the reason is false.
Option 4: The assertion is false, but the reason is true.
Correct Answer: Both the assertion and reason are true, and the reason is a correct explanation of the assertion.
Solution : The correct answer is (a) Both the assertion and reason are true, and the reason is a correct explanation of the assertion.
The assertion is true. In an oligopoly, a small number of firms have significant market power and control a substantial portion of the market. These firms often compete with each other for market share.
The reason provided is also true. Oligopolistic firms often rely on strategies other than price to differentiate themselves and attract customers. This can include advertising campaigns, product innovation, branding, and other forms of non-price competition. These strategies allow firms to create a perceived difference in their products or services and compete based on factors other than price.
Therefore, both the assertion and reason are true, and the reason correctly explains why oligopolistic firms tend to engage in non-price competition.
Question : Assertion: Monopolistic competition is characterized by many firms selling similar, but slightly differentiated products.
Reason: Product differentiation in monopolistic competition allows firms to have some control over prices.
Question : Assertion: Marketing management aims to create and maintain profitable customer relationships.
Reason: Marketing management is exclusively focused on advertising and promotion.
Option 1: Both assertion and reason are true, and the reason is the correct explanation of the assertion.
Option 2: Both assertion and reason are true, but the reason is not the correct explanation of the assertion.
Option 3: Assertion is true, but the reason is false.
Option 4: Assertion is false, but the reason is true.
Question : Assertion: Marketing is the process of creating, distributing, promoting, and pricing goods and services.
Reason: Marketing only involves advertising and promotion.
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