Under which of the following market structures would the highest output of a particular good be produced?
A)perfect competition
B)monopolistic competition
C)oligopoly
D)monopoly

Question

Quizplus · Accepted Answer

In perfect competition, there are many firms competing in the market, each producing a small portion of the total output. As a result, firms in a perfectly competitive market are price takers and do not have market power. In this market structure, the output is determined by the intersection of the market demand and supply curve, resulting in the highest possible output for a particular good. In contrast, monopolistic competition, oligopoly, and monopoly have varying degrees of market power, which can limit output and result in higher prices.

Under Which of the Following Market Structures Would the Highest