A market with a large number of sellers
A) can only be a perfectly competitive market.
B) might be an oligopoly or a perfectly competitive market.
C) might be a monopolistically competitive or a perfectly competitive market.
D) might be a perfectly competitive, monopolistically competitive, oligopoly, or monopoly market.
E) can only be a monopolistically competitive market.

Question

Quizplus · Accepted Answer

A market with a large number of sellers can be either monopolistically competitive or perfectly competitive. In both market structures, the presence of many sellers is a key characteristic. Monopolistically competitive markets feature many sellers offering differentiated products, while perfectly competitive markets have many sellers offering identical products.

A Market with a Large Number of Sellers