For which market structure do economists have the least precise model of price determination?
A) perfect competition in the short run
B) perfect competition in the long run
C) oligopoly
D) monopoly

Question

Quizplus · Accepted Answer

Economists have the least precise model of price determination for oligopoly because it is a market structure where a small number of firms dominate the market and are interdependent, which makes it difficult to predict their pricing behavior. There are various models used to analyze oligopoly, such as the kinked demand curve model and the game theory model, but none of them provide a comprehensive or precise explanation of price determination in oligopoly.

For Which Market Structure Do Economists Have the Least Precise