Multiple Choice
Which of the following is an assumption made in the model of pure monopoly?
120
views
12. Monopoly
Characteristics of Monopoly
Multiple Choice
Which type of industry is characterized by a limited number of competing firms?
A
Perfect competition
B
Oligopoly
C
Monopoly
D
Monopolistic competition
Verified step by step guidance1
Understand the characteristics of different market structures: Perfect competition, Monopoly, Monopolistic competition, and Oligopoly.
Recall that perfect competition involves many firms with identical products, so it does not have a limited number of firms.
Recognize that a monopoly has only one firm dominating the entire market, which is not a limited number but a single firm.
Identify that monopolistic competition has many firms selling differentiated products, so it also does not have a limited number of firms.
Conclude that an oligopoly is characterized by a few firms dominating the market, which means it has a limited number of competing firms.
Related Videos
Related Practice
