Which of the following is correct?
A) In perfect competition, most firms in an industry are large.
B) In monopolistic competition, there are fewer sellers than in perfect competition but still many buyers.
C) All things considered, perfect competition is the ideal situation.
D) In order for an oligopoly to exist, there must not be more than three sellers.
E) In a monopoly, the firm that is the only supplier does not have to worry about how much consumer demand will fall as it raises its prices.

Question

Quizplus · Accepted Answer

In monopolistic competition, there are still many buyers but fewer sellers than in perfect competition. In perfect competition, firms are typically small and there are many sellers in the industry. Therefore, options A, C, D, and E are incorrect.

Which of the Following Is Correct