GENERAL KNOWLEDGE

Detailed explanation-1: -Economic market structures can be grouped into four categories: perfect competition, monopolistic competition, oligopoly, and monopoly.

Detailed explanation-2: -The profit motive refers to an individual’s drive to undertake activities that will yield net economic gain. Because of the profit motive, people are induced to invent, innovate, and take risks that they may not otherwise pursue.

Detailed explanation-3: -Profit motive is a financial term that describes the desire to make money through action. It’s the idea behind why people may create new, lucrative products or take financial or business risks.

Detailed explanation-4: -Pure Competition Is Best for the Consumer From the consumer point of view, pure competition is the best type of market, because it gives consumers the greatest consumer surplus and maximizes total surplus for the economy.