ECONOMICS
COMPETITION AND MARKET STRUCTURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Pure competition
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Monopolistic competition
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Oligopoly
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Monopoly
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Detailed explanation-1: -A monopoly is the most challenging market to enter. Below is the source of monopoly power which makes it difficult for other firms to enter; Legal barriers. For example, a company may patent its product to protect its self from competitors for a given period.
Detailed explanation-2: -Purely monopolistic markets are scarce and perhaps even impossible in the absence of absolute barriers to entry, such as a ban on competition or sole possession of all-natural resources. When they do occur, the monopoly that sets the price and supply of a good or service is called the price maker.
Detailed explanation-3: -The correct answer is d. A monopoly market system is a structure that has entry barriers. The market usually has entry barriers because it is characterized by having one seller of a particular good. No other firm produces that specific product; thus, the product being sold has no replacements.
Detailed explanation-4: -Price discrimination is impossible in perfect competition.