ECONOMICS
COMPETITION AND MARKET STRUCTURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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TRUE
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FALSE
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Either A or B
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None of the above
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Detailed explanation-1: -An oligopoly is a market structure in which many firms sell products that are similar but not identical. The market for crude oil is an example of an oligopolistic market.
Detailed explanation-2: -Monopolistic competition occurs when many companies offer products that are similar but not identical. Firms in monopolistic competition differentiate their products through pricing and marketing strategies.
Detailed explanation-3: -In an oligopoly, a few sellers supply a sizable portion of products in the market. They exert some control over price, but because their products are similar, when one company lowers prices, the others follow. In a monopoly, there is only one seller in the market.
Detailed explanation-4: -Oligopoly markets are markets dominated by a small number of suppliers. They can be found in all countries and across a broad range of sectors. Some oligopoly markets are competitive, while others are significantly less so, or can at least appear that way.
Detailed explanation-5: -Monopolistic competition In monopolistic competition, there are many sellers in the market. Sellers sell products that are similar but not identical. Products could be close substitutes. Examples are apartments, books, bottled water, clothing, fast food, night clubs, etc.