Both monopolistic competition and oligopoly are market structures
A)that fail to achieve the total surplus achieved by perfect competition.
B)that feature only a few firms in each market.
C)to which the concept of Nash equilibrium is frequently applied by economists.
D)in which firms earn zero economic profit in the long run.

Question

Quizplus · Accepted Answer

Monopolistic competition and oligopoly both result in less total surplus than perfect competition due to inefficiencies like price markups and restricted output.

Both Monopolistic Competition and Oligopoly Are Market Structures