Which one the following statements correctly describes the market situations? (I

Question

Which one the following statements correctly describes the market situations? (Important Note: Remember all of the answers below are the wrong statements, except one. Your job is to find out which one is the correct statement) a. Under oligopoly there are a few firms in an industry, under monoploy there is only one firm and under perfectly competitive market there are three dominant ones. b. Monopoly market has one firm in an industry, oligopoly has few firms in an industry, and perfectly competitive market has numerous firms in an industry. c. government always plays a role in restricitng entry of firms in an industry under perfectly competitive market, market forces dictate the behavior of monopolist d. under oligopoly market many firms dominate decision making, under monopoly only one firm does it and few firms in perfectly competitive market dominate decision making.

Explanation / Answer

Option (b).

A monopolist is the single seller in market, so firm and market are the one and same. An oligopoly market is characterized by presence of a few large firms that dominate the market. In perfect competition, there are many small firms with no market power.

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.