GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A situation in which the number of competing firms is relatively small is known as
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Monopoly
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Oligopoly
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Monopsony
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Perfect competition
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Explanation:
Detailed explanation-1: -An oligopoly is a market structure with a small number of firms, none of which can keep the others from having significant influence. The concentration ratio measures the market share of the largest firms.
Detailed explanation-2: -Oligopoly = A market structure characterized by barriers to entry and a few firms. Oligopoly is a fascinating market structure due to interaction and interdependency between oligopolistic firms.
Detailed explanation-3: -The oligopoly theory usually refers to the partial equilibrium study of markets in which the demand side is competitive, while the supply side is neither monopolized nor competitive. It is exclusively concerned with single period models.
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