the following competitive markets from MOST competitive to least competitive.
A) monopolistic competition, pure monopoly, pure competition, and oligopoly.
B) pure competition, monopolistic competition, oligopoly, and pure monopoly.
C) pure competition, monopolistic competition, pure monopoly, and oligopoly
D) monopolistic competition, pure monopoly, pure competition, and oligopoly
E) pure monopoly, oligopoly, monopolistic competition, and pure competition

Question

Quizplus · Accepted Answer

Pure competition is the most competitive market structure, as there are many small firms, no barriers to entry or exit, and the products are identical. Monopolistic competition is slightly less competitive, as there are still many firms, but they differentiate their products slightly, creating a small degree of market power. Oligopoly is less competitive, as there are only a few large firms with significant market power. Pure monopoly is the least competitive, as there is only one firm with complete control over the market. Therefore, the correct order from most competitive to least competitive is pure competition, monopolistic competition, oligopoly, and pure monopoly. This corresponds to choice B.

The Following Competitive Markets from MOST Competitive to Least Competitive