Which of the following market structures is most similar to perfect competition?
A)Monopsony.
B)Monopolistic competition.
C)Oligopoly.
D)Monopoly.

Question

Quizplus · Accepted Answer

Monopolistic competition is the market structure most similar to perfect competition. In both structures, there are numerous small firms competing with each other, entry and exit are easy, and products are relatively homogeneous. Unlike perfect competition, however, firms in monopolistic competition can differentiate their products through branding or other means, allowing them to exert some control over price.

Which of the Following Market Structures Is Most Similar to Perfect