Which option correctly sorts different market structures in terms of competitiveness,from the most competitive to the least?

Question

Quizplus · Accepted Answer

Perfect competition is the most competitive market structure, as there are many small firms competing with each other and no firm has market power. Monopolistic competition is also competitive, but firms have a small degree of market power due to product differentiation. Oligopoly is less competitive as a few large firms dominate the market and may collude to restrict competition. Finally, monopoly is the least competitive market structure as there is only one firm, which has significant market power and can set prices and output levels without any competition. Therefore, the correct order of competitiveness is A) Perfect competition, monopolistic competition, oligopoly, monopoly.

Which Option Correctly Sorts Different Market Structures in Terms of Competitiveness,from