There are two types of markets in which firms face some competition yet are still able to have some control over the prices of their products.The names given to these market structures are
A)monopolistic competition and oligopoly.
B)duopoly and triopoly.
C)perfect competition and monopolistic competition.
D)duopoly and imperfect competition.

Question

Quizplus · Accepted Answer

Monopolistic competition and oligopoly are the two types of markets where firms face some level of competition, but still have control over their prices. In monopolistic competition, firms sell differentiated products that are substitutes for each other, and they can influence prices by differentiating their products and creating brand loyalty. In an oligopoly, a small number of large firms dominate the market, and they can influence prices through collusion or strategic decision-making. Duopoly and triopoly are specific types of oligopoly where there are two or three dominant firms in the market, respectively. Perfect competition and imperfect competition are not types of markets where firms have control over prices. Perfect competition is characterized by many small firms selling homogenous products, while imperfect competition includes many types of markets, such as monopolies, monopolistic competition, and oligopolies.

There Are Two Types of Markets in Which Firms Face