Which is the correct sequence if we are ranking market structures from that where a firm has most control over price to that where a firm has least control?
A) Monopoly, oligopoly, monopolistic competition, pure competition.
B) Monopolistic competition, monopoly, pure competition, oligopoly.
C) Pure competition, monopolistic competition, monopoly, oligopoly.
D) Oligopoly, monopoly, pure competition, monopolistic competition.

Question

Quizplus · Accepted Answer

In a monopoly, a single firm has the most control over the price because it is the only provider of a good or service. An oligopoly, where a few firms dominate, offers some degree of price control but less than a monopoly. In monopolistic competition, many firms sell products that are similar but not identical, leading to some price competition. Pure competition involves many firms selling identical products, where no single firm can influence the market price, resulting in the least control over price.

Which Is the Correct Sequence If We Are Ranking Market