ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The correct sequence of the market structure from most to least competitive is perfect competition, imperfect competition, oligopoly and pure monopoly.

Detailed explanation-2: -In a monopolistic market, there is only one firm that dictates the price and supply levels of goods and services. A perfectly competitive market is composed of many firms, where no one firm has market control. In the real world, no market is purely monopolistic or perfectly competitive.

Detailed explanation-3: -A monopoly is a good example of a non-competitive market, because by definition, a monopolist is a firm that has a market all to themselves. What if there was only one supplier of smartphones in the world? That firm would be a monopoly, and it could raise the prices on all the smartphones.

Detailed explanation-4: -Oligopoly. An oligopoly is dominated by a few firms, resulting in limited competition. They can collaborate with or compete against each other to use their collective market power to drive up prices and earn more profit. Entering into an oligopoly is difficult.