GENERAL KNOWLEDGE

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: -In the real world, pure monopoly is rare and perfectly competitive markets are almost nonexistent. The most common types of market structures are oligopoly and monopolistic competition.

Detailed explanation-3: -There are typically high barriers to entry, which are obstacles that prevent other companies from entering the market. Potential entrants to the market are at a disadvantage because the monopoly has a first-mover advantage and can lower prices to undercut a potential newcomer and prevent them from gaining market share.

Detailed explanation-4: -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.