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

Question

Quizplus · Accepted Answer

Perfect competition is the theoretical extreme at the other end of the market structure spectrum from monopoly. In a perfectly competitive market, there are many small firms, homogeneous products, and easy entry and exit conditions. This results in no single firm having control over market prices and each firm being a price taker. This is in contrast to monopoly, where a single firm has complete control over the market and can set prices as it wishes.

The Two Theoretical Extremes of the Market Structure Spectrum Are