The correct ranking of degree of market power (from highest to lowest)is
A)Monopoly,monopolistic competition,perfect competition,oligopoly.
B)Monopoly,monopolistic competition,oligopoly,perfect competition.
C)Monopoly,oligopoly,monopolistic competition,perfect competition.
D)Oligopoly,monopoly,monopolistic competition,perfect competition.

Question

Quizplus · Accepted Answer

Monopoly is the highest degree of market power where there is only one seller in the market. Oligopoly is the second-highest degree of market power where a few large firms dominate the market. Monopolistic competition is the third-highest degree of market power where many small firms sell differentiated products. Perfect competition is the lowest degree of market power where many small firms sell homogeneous products. Therefore, the correct ranking of degree of market power (from highest to lowest) is Monopoly, oligopoly, monopolistic competition, perfect competition.

The Correct Ranking of Degree of Market Power (From Highest