Firms in industries that have competitors but do not face so much competition that they are price takers are operating in either a(n)
A)oligopoly or perfectly competitive market.
B)oligopoly or monopoly market.
C)oligopoly or monopolistically competitive market.
D)monopoly or monopolistically competitive market.

Question

Quizplus · Accepted Answer

In an oligopoly market, there are only a few dominant firms that control the market and can influence prices. In a monopoly market, there is only one firm that controls the market and sets prices. In a perfectly competitive market, there are many small firms that cannot influence prices. Therefore, the only option left is a monopolistically competitive market, where firms have some market power but still face competition from other firms.

Firms in Industries That Have Competitors but Do Not Face