CBSE Class 12 Micro Economics Revision Notes Chapter 6

Class 12 Micro Economics Chapter 6 Notes – Non-Competitive Markets

The students can now refer to the Class 12 Microeconomics Chapter 6 Notes to perform better in the board exams. They can achieve good marks and score more in competitive exams. The subject matter experts prepare the revision notes. Class 12 Microeconomics chapter 6 notes are now available on the Extramarks’ website for students to refer to. 

In the chapter- Non-competitive Markets, the students will get to learn about the market condition and what is perfect competition. The students will also learn about the features of perfect competition and know about the monopoly market. 

By studying with Microeconomics chapter 6 Class 12 notes, the students can grasp their knowledge of complex concepts. The students can visit the Extramarks’ website for the latest updates and notifications. 

Key Topics Covered In Class 12 Microeconomics Chapter 6 Notes

The key topics covered under class 12 Non-competitive market chapter 6 notes include: 

Market

It’s a way for buyers and sellers to come together to buy and sell a commodity or service at agreed prices.

Perfect Competition: 

It’s a market structure where many buyers and sellers compete for the same product at the same price. Firms have no restrictions on entry and exit, and there is no government oversight.

Features of Perfect Competition

• It has a large number of vendors and purchasers.
• The product is homogeneous.
• Market entry and exit are open to all.
• A perfectly elastic demand curve.
• There are no transport costs.

Monopoly Market:

Monopoly markets are those in which one seller controls a large market and many buyers. There are no similar products.

Some Features of the Monopoly Market:

• One seller can have many potential buyers.
• Barriers that prevent new firms from entering the market.
• There are no comparable substitutes.
• It’s a price-maker.
• A demand curve that is less elastic with a downward slope.

Average Revenue (AR) or Marginalised Revenue (MR) Curve in Monopoly Market:

The Average Revenue (AR) is the income or revenue earned by a firm for each unit of an item sold. The AR (Demand Curve) is less elastic than the monopolistic competition and tends to slope downward from left to right. This means that to increase demand, you must lower the price.

Monopolistic Competition:

This market has a lot of buyers and sellers. Many products are on offer, but not all of them are identical. They are almost similar.

Some Features of Monopolistic Competition:

• Advertising and sales promotion costs.
• Lack of comprehensive knowledge.
• An elastic demand curve slopes downward.
• Products and production factors are not always mobile.

Average Revenue (AR) or Marginalised Revenue (MR) Curve in Monopolist Market:

The revenue received by an organisation per unit of its sold item is known as the Average Revenue (AR). The average revenue curve generally goes down from left to right. And the AR curve is considered to be less elastic than the monopolistic competition curve. This indicates that in order to see an increase in demand, the price has to be reduced. 

Considering the marked demand for their product, the monopolist can grow sales by decreasing the price. However, the marginalised revenue will decline at a faster rate than the average revenue drop. So the monopolist can either set the price or the output. They won’t be able to take both decisions at the same time.

Oligopoly:

It is a market structure where only a few companies can exert significant influence.

Price Maker:

This is a business or organization with a monopoly, such as a firm. It allows it to affect the price it charges, given that its goods are not perfect substitutes. A price maker is a company that produces goods that are different from its competitors.

The State of Demand Curve Under Various Market Structures:

• Monopoly refers to a market category with only one seller and no distinction between a company and an industry.
• Monopolistic competition is when a group of monopolists competes to produce a different product. Each company has a slightly different product.

Marginal Revenue Value in an Elastic Demand Curve

Marginal revenue will increase if the demand curve is elastic. Below is a graphic showing the relationship between the value MR and the demand curve. The diagram indicates that the marginal and average revenue curves slope downwards from left to right.

Price Elasticity and Marginal Revenue:

There is a direct correlation between price elasticity and marginal income. The more flexible a product’s demand is, the more affected by changes in supply. In a competitive marketplace, marginal revenue and price are equal. In a competitive market, marginal revenue and price elasticity are directly related.

Students may refer to NCERT solutions, and CBSE revision notes, in addition to Class 12 Microeconomics Chapter 6 Notes on Extramarks, for more detailed study material.

Class 12 Microeconomics Chapter 6 Notes Exercises & Answer Solutions

The students can practice with the help of Class 12 Microeconomics Chapter 6 Notes. The revision notes will help them to score better in the board exams. It offers a short keynote that will help the students recall the concepts and definitions quickly. Later, the students can enhance their practice with exercise and answer solutions. 

The solutions are considered helpful study material to evaluate the knowledge on the key topics. They are prepared by experts and provide a brief presentation of the concepts. It furnishes a clear picture of non-competitive markets. 

Students can click on the links below to access various study materials in addition to Class 12 Microeconomics Chapter 6 Notes.

The study material provided by Extramarks’ are as per the CBSE syllabus and with reference to NCERT books. Students may benefit from referring to them while studying from class 12 Micro Economics chapter 6 notes, as these materials contain important questions from the examination point of view.

Key Features of NCERT Solutions Class 12 Microeconomics Chapter 6 Notes 

The key features of Class 12 Microeconomics Chapter 6 notes include:

• These notes act as an ultimate guide for the students and help them prepare for the exam.
• The revision notes summarise the whole chapter in a capsule. 
• In Class 12 Microeconomics Chapter 6 Notes, the students will be able to clear about the definitions and the graph. 
• The students will get complete knowledge about the concepts in essential subtopics.
• Chapter 6 Microeconomics Class 12 Notes save time and provide short keynotes that are easy to remember. 
• The students will learn about the monopoly market, and they will explore the features of monopoly. 
• The graphs are presented for easy revision.