ECONOMICS
MARKET FAILURES
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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: -The correct sequence of the market structure from most to least competitive is perfect competition, imperfect competition, oligopoly and pure monopoly.
Detailed explanation-2: -Monopoly is the least competitive market structure.
Detailed explanation-3: -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.
Detailed explanation-4: -The correct answer isB. fewer firms compete in oligopoly than in monopolistic competition. The monopolistic competitive market has many firms as there are relatively low barriers to entry. The firms in this market sell similar but not identical products.