Which market type has the largest number of firms?
A)perfect competition
B)monopoly
C)monopolistic competition
D)oligopoly

Question

Quizplus · Accepted Answer

In a perfectly competitive market, there are a large number of firms, each selling an identical product. This means that no one firm can influence the market price. As a result, there is no incentive for any firm to try to increase its market share by lowering prices, since it would have no effect on the overall market. Therefore, the number of firms in a perfect competition market is typically the largest among all market types.

Which Market Type Has the Largest Number of Firms