Which of the following statements is correct when comparing a monopoly market and an oligopoly market?

Question

Quizplus · Accepted Answer

In a monopoly market, there is only one firm that dominates the market and has complete control over the price and quantity of goods or services. Therefore, the firm can set a higher price and produce a lower quantity of goods or services. In an oligopoly market, there are few dominant firms that compete with each other, so they have some control over the market price and quantity. As a result, they may produce a higher quantity of goods or services and keep the price lower to compete with each other. So, the price would be higher and the quantity would be lower in the monopoly market than in the oligopoly market.

Which of the Following Statements Is Correct When Comparing a Monopoly