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

Question

Quizplus · Accepted Answer

Perfect competition, oligopoly, and monopolistic competition all have higher competition levels than monopoly, which leads to lower prices in the long run. While oligopoly and monopolistic competition may have some market power, their prices will still be lower than monopoly due to increased competition.

Which of the Following Market Structures Will Have Lower Prices