The two types of market structures that are imperfectly competitive are:
A) perfect competition and monopolistic competition.
B) monopolistic competition and oligopoly.
C) oligopoly and monopoly.
D) monopoly and perfect competition.

Question

Quizplus · Accepted Answer

Monopolistic competition and oligopoly are both examples of imperfectly competitive market structures. Monopolistic competition is characterized by a large number of firms selling similar but not identical products, while oligopoly is characterized by a small number of large firms dominating the market. Both market structures exhibit market power, which allows firms to influence prices and output levels. In contrast, perfect competition and monopoly are examples of perfectly competitive and highly concentrated market structures, respectively, which do not exhibit the same degree of market power.

The Two Types of Market Structures That Are Imperfectly Competitive