The figure given below shows the revenue and cost curves of a firm. MC represents the marginal cost curve, AC the average cost curve, MR the marginal revenue curve, and AR the average revenue curve.Figure 9.4

-The ordering of market structures from most market power to least market power (where market power is the ability to set its own price) is:
A)monopoly, monopolistic competition, oligopoly, perfect competition.
B)perfect competition, monopolistic competition, oligopoly, monopoly.
C)oligopoly, monopoly, monopolistic competition, perfect competition.
D)monopoly, oligopoly, monopolistic competition, perfect competition.
E)monopoly, perfect competition, monopolistic competition, oligopoly.

Question

The figure given below shows the revenue and cost curves of a firm. MC represents the marginal cost curve, AC the average cost curve, MR the marginal revenue curve, and AR the average revenue curve.Figure 9.4
 
-The ordering of market structures from most market power to least market power (where market power is the ability to set its own price) is:
A)monopoly, monopolistic competition, oligopoly, perfect competition. 
B)perfect competition, monopolistic competition, oligopoly, monopoly. 
C)oligopoly, monopoly, monopolistic competition, perfect competition. 
D)monopoly, oligopoly, monopolistic competition, perfect competition. 
E)monopoly, perfect competition, monopolistic competition, oligopoly.

Quizplus · Accepted Answer

Monopoly has the most market power as it is the sole provider of a product or service. Oligopoly consists of a few firms that have significant control but more competition than a monopoly. Monopolistic competition involves many firms that sell similar but not identical products, offering some degree of market power. Perfect competition has the least market power, with many firms selling identical products, making it impossible for individual firms to influence prices.

The Figure Given Below Shows the Revenue and Cost Curves