Which market model assumes the least number of firms in an industry?
A) monopolistic competition
B) pure competition
C) pure monopoly
D) oligopoly

Question

Quizplus · Accepted Answer

Pure monopoly assumes only one firm in an industry, with complete control over the market price and supply of the product. This is in contrast to pure competition, which assumes a large number of small firms, monopolistic competition, which assumes many firms with slightly differentiated products, and oligopoly, which assumes a small number of large firms.

Which Market Model Assumes the Least Number of Firms in an Industry