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

Question

Quizplus · Accepted Answer

All three market structures, monopolistic competition, oligopoly, and monopoly, have lower output in the long run than perfect competition, ceteris paribus. Monopolistic competition and oligopoly have barriers to entry and differentiation, which lead to prices being higher and output being lower. Monopoly has complete control over the market, leading to even less output.

Which of the Following Market Structures Will Have Lower Output