Exhibit 25-9

-Refer to Exhibit 25-9.The number of sellers in a perfectly competitive market is ___________ [blank (A)],the number of sellers in a monopolistic competitive market is ____________ [blank (B)],and the number of sellers in an oligopoly is _________ [blank (C)].

Question

Exhibit 25-9
 
-Refer to Exhibit 25-9.The number of sellers in a perfectly competitive market is ___________ [blank (A)],the number of sellers in a monopolistic competitive market is ____________ [blank (B)],and the number of sellers in an oligopoly is _________ [blank (C)].

Quizplus · Accepted Answer

In a perfectly competitive market, there is a large number of small firms, thus many sellers. In a monopolistic competitive market, there are many firms but they have some control over their prices due to product differentiation, resulting in a few sellers. In an oligopoly, there are only a few large firms that dominate the market, resulting in few sellers. Therefore, only choice A correctly describes the number of sellers in each market structure.

Exhibit 25-9 -Refer to Exhibit 25-9.The Number of Sellers in a Perfectly