If you were to rank the four market structures in terms of lowest concentration ratio to highest concentration ratio, which of the following rankings would be correct?
A)oligopoly, monopoly, perfect competition, monopolistic competition
B)monopoly, oligopoly, monopolistic competition, perfect competition
C)perfect competition, monopolistic competition, oligopoly, monopoly
D)monopolistic competition, perfect competition, oligopoly, monopoly
E)monopolistic competition, oligopoly, perfect competition, monopoly

Question

Quizplus · Accepted Answer

In perfect competition, there are many firms with none having a significant market share, leading to the lowest concentration ratio. Monopolistic competition has many firms but with some product differentiation, leading to a slightly higher concentration. Oligopoly has few firms with significant market shares, increasing concentration further. Monopoly, with a single firm dominating the market, has the highest concentration ratio.

If You Were to Rank the Four Market Structures in Terms