Which of the following statements about the prevalence of different types of market structures is TRUE?
A)Monopolistic competition and monopoly are more common than oligopoly and perfect competition.
B)Oligopoly and perfect competition are more common than monopolistic competition and monopoly.
C)Oligopoly and monopolistic competition are more common than monopoly and perfect competition.
D)Monopoly and perfect competition are more common than oligopoly and monopolistic competition.

Question

Quizplus · Accepted Answer

Monopoly and perfect competition are relatively uncommon in the real world, as they represent extreme ends of the spectrum. Oligopoly and monopolistic competition are more common because they are more representative of the market structures that exist in most industries. Oligopoly occurs when there are only a few dominant firms in the market, which is often the case in industries such as telecommunications or airlines. Monopolistic competition occurs when there are many firms producing similar but differentiated products, which is common in industries like fast food or retail. Therefore, C is the correct answer as it reflects the prevalence and reality of market structures.

Which of the Following Statements About the Prevalence of Different