Which of the following market structures will have higher prices in the long run than perfect competition,ceteris paribus?
A)Monopolistic competition and monopoly,but not oligopoly.
B)Oligopoly and monopoly,but not monopolistic competition.
C)Monopoly,but not oligopoly or monopolistic competition.
D)Monopolistic competition,monopoly,and oligopoly.

Question

Quizplus · Accepted Answer

Monopolistic competition, monopoly, and oligopoly typically have higher prices in the long run than perfect competition due to reduced competition, market power, and barriers to entry, which allow firms to set prices above marginal costs.

Which of the Following Market Structures Will Have Higher Prices