The two theoretical extremes of the market structure spectrum are occupied on one end by perfect competition and on the other end by:
A) monopoly.
B) duopoly.
C) oligopoly.
D) monopolistic competition.

Question

Quizplus · Accepted Answer

Monopoly is the theoretical extreme opposite of perfect competition. While perfect competition describes a market with many sellers and buyers with no one having a significant impact on price, monopoly describes a market with only one seller controlling the entire market and having significant influence over price. Duopoly and oligopoly are in-between market structures with some degree of competition, but not to the extent of perfect competition. Monopolistic competition is also not at the extreme end of the spectrum, as it has many sellers but they offer differentiated products and have some pricing power.

The Two Theoretical Extremes of the Market Structure Spectrum Are