Which of the following market structures is consistent with many sellers in the marketplace? (i) perfect competition
(ii) monopolistic competition
(iii) monopoly
(iv) oligopoly

Question

Quizplus · Accepted Answer

Perfect competition and monopolistic competition involve many sellers in the marketplace, whereas monopoly and oligopoly involve few sellers or even a single seller. Therefore, the best choice would be either (i) only or both (i) and (ii), as they are the only market structures consistent with many sellers in the marketplace. (i) Perfect competition involves many firms selling homogeneous products, while (ii) monopolistic competition involves many firms selling differentiated products.

Which of the Following Market Structures Is Consistent with Many