A single firm serves a large part of the market.The rest of the market is served by a large number of competitive firms.Which market model is best applicable to this type of industry?
A)Monopoly
B)Monopolistic competition
C)Dominant firm model
D)Cournot duopoly

Question

Quizplus · Accepted Answer

The dominant firm model is the most applicable market model in this scenario as it involves a single dominant firm that sets the price and output level, while the other competitive firms adjust their output levels to the dominant firm's output. This model is commonly observed in the telecommunications and transportation industries.

A Single Firm Serves a Large Part of the Market