In which type of market structure can few sellers exert substantial control over prices?
A) monopolistic competition
B) oligopoly
C) perfect monopoly
D) pure monopoly

Question

Quizplus · Accepted Answer

In an oligopoly market structure, few sellers exist, which can lead to substantial control over prices. This is because the few sellers can easily collude and manipulate the market. In a monopolistic competition and perfect monopoly, there are differences in the number of sellers and the level of control they can exert over prices. In a pure monopoly, there is only one seller, so there is no competition, and the seller can set prices as they please.

In Which Type of Market Structure Can Few Sellers Exert