All the following statements are true except:
A)Perfect competition can only exist in industries with a large number of firms.
B)A monopoly market structure cannot exist in an industry with an undifferentiated product.
C)Monopolistic competition implies that each firm has some ability to differentiate its product.
D)Oligopoly can exist in industries with differentiated and undifferentiated products.

Question

Quizplus · Accepted Answer

A monopoly market structure can exist even in an industry with an undifferentiated product, as long as there is a single firm controlling the market. Therefore, statement B is false. Statements A, C, and D are true. A monopoly market structure can exist in an industry with an undifferentiated product, such as the market for water or electricity. In these cases, the monopoly power is often granted by the government as a natural monopoly.

All the Following Statements Are True Except