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.

Question

Quizplus · Accepted Answer

Monopolistic competition, oligopoly, and monopoly all have some degree of market power that allows them to restrict output and raise prices in comparison to perfect competition. In the long run, this can lead to lower output levels as firms focus on maximizing profits rather than producing at the lowest possible cost. Therefore, all three market structures in option B will have lower output in the long run than perfect competition.

Which of the Following Market Structures Will Have Lower Output