Price and output are determinates in market structure other than -

A. monopoly
B. perfect competition
C. oligopoly
D. monopsony
Answer» B. perfect competition
Explanation: Perfect competition is a form of market in which there are a large number of buyers and sellers competing with each other in the purchase and sale of goods, respectively and no individual buyer or seller has any influence over the price and output. Each firm's output is a perfect substitute for the output of the other firms. so the demand for each firm's output isperfectly elastic. Product differentiation holds the key in this type of market structure.
Do you find this helpful?

View all MCQs in

Economics (GK)


No comments yet