If a firm has at least some control over the price of its product, then the firm cannot be in which market model?
A) oligopoly
B) pure monopoly
C) pure competition
D) monopolistic competition

Question

Quizplus · Accepted Answer

Pure competition is characterized by a large number of small firms producing an identical product, none of which have any control over the market price. Therefore, if a firm has any control over the price of its product, it cannot be in a pure competition market. The other market models listed (oligopoly, pure monopoly, and monopolistic competition) all involve varying degrees of control over price by the firms.

If a Firm Has at Least Some Control Over the Price