Economic theory of market forms between pure monopoly and perfect competition was largely nonexistent until the work of
A)Joan Robinson and Edward Chamberlin.
B)Adam Smith and David Ricardo.
C)Alfred Marshall and Francis Edgeworth.
D)Wassily Leontief and Joseph Schumpeter.

Question

Quizplus · Accepted Answer

Joan Robinson and Edward Chamberlin developed the theory of monopolistic competition, which falls between pure monopoly and perfect competition in terms of market form. This theory became an important addition to economic theory, as it explained how firms could differentiate themselves from competitors through product differentiation and non-price competition in a market that was somewhat competitive, but not perfectly so. Alfred Marshall and Francis Edgeworth contributed important work in microeconomics, but did not specifically address the concept of monopolistic competition. Wassily Leontief and Joseph Schumpeter made significant contributions to economic theory in other areas, but did not directly contribute to the development of market form theory.

Economic Theory of Market Forms Between Pure Monopoly and Perfect