ECONOMICS
COMPETITION AND MARKET STRUCTURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Monopoly
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Oligopoly
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perfect competition
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monopolistic competition
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Detailed explanation-1: -Monopoly market is characterized to have a single seller of the commodity with no substitutes. Thus, the monopolist has full control over the pricing of the product.
Detailed explanation-2: -Monopolistic Markets In a monopolistic market, firms are price makers because they control the prices of goods and services. In this type of market, prices are generally high for goods and services because firms have total control of the market.
Detailed explanation-3: -In a monopoly market structure, the prices are pretty stable. This is because there is only one firm involved in the market that sets the prices since there is no competing product. In other types of market structures prices are not stable and tend to be elastic as a result of the competition.