The degree of rivalry in a market moves from high to low in the following order:
A)monopoly, imperfect competition, and perfect competition.
B)perfect competition, imperfect competition, and monopoly.
C)imperfect competition, monopoly, and perfect competition.
D)monopoly, perfect competition, and imperfect competition.

Question

Quizplus · Accepted Answer

In perfect competition, there are many small firms and no single firm has control over prices, resulting in low rivalry. In imperfect competition, firms have some control over prices and may differentiate their products, resulting in moderate rivalry. In a monopoly, there is only one firm and no competition, resulting in no rivalry. Therefore, the correct sequence is perfect competition (low rivalry) → imperfect competition (moderate rivalry) → monopoly (no rivalry).

The Degree of Rivalry in a Market Moves from High