ECONOMICS
MARKET FAILURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a form of nonprice competition.
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a negative externality.
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a positive externality of her education.
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a sign of market efficiency.
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Detailed explanation-1: -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-2: -Economists have identified four types of competition-perfect competition, monopolistic competition, oligopoly, and monopoly.
Detailed explanation-3: -Oligopoly is a market structure that has a few large firms selling the products in the market and has restrictions on the entry of new firms. Therefore, the new firms find it difficult to enter this market.
Detailed explanation-4: -The correct sequence of the market structure from most to least competitive is perfect competition, imperfect competition, oligopoly and pure monopoly.