ECONOMICS (CBSE/UGC NET)

ECONOMICS

COMPETITION AND MARKET STRUCTURES

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

SSEMI3 b You go to a shoe store at the mall. The store carries many different brands and styles of shoes. What market structure would best describe this situation?

A	Perfect Competition
B	Monopolistic Competition
C	Monopoly
D	Oligopoly

Explanation:

Detailed explanation-1: -Question: The sport shoes industry is an oligopoly market.

Detailed explanation-2: -Economic market structures can be grouped into four categories: perfect competition, monopolistic competition, oligopoly, and monopoly. The categories differ because of the following characteristics: The number of producers is many in perfect and monopolistic competition, few in oligopoly, and one in monopoly.

Detailed explanation-3: -The best examples of pure competition market structures are stock, agricultural and craft markets.

Detailed explanation-4: -Market structure refers to the way that various industries are classified and differentiated in accordance with their degree and nature of competition for products and services. It consists of four types: perfect competition, oligopolistic markets, monopolistic markets, and monopolistic competition.

There is 1 question to complete.