ECONOMICS
COMPETITION AND MARKET STRUCTURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Perfect Competition
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Monopolistic Competition
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Oligopoly
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Monopoly
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Detailed explanation-1: -In a perfect competition market structure, there are a large number of buyers and sellers. All the sellers of the market are small sellers in competition with each other. There is no one big seller with any significant influence on the market. So all the firms in such a market are price takers.
Detailed explanation-2: -Answer and Explanation: Perfect competition has the largest number of suppliers. Of the four levels of competition, it is one of the most difficult to achieve, because of the characteristics of the system: consumer and supplier knowledge of product and price.
Detailed explanation-3: -The correct sequence of the market structure from most to least competitive is perfect competition, imperfect competition, oligopoly and pure monopoly.
Detailed explanation-4: -Perfect competition occurs when there are many sellers, there is easy entry and exiting of firms, products are identical from one seller to another, and sellers are price takers.