The Correct Sequence of Market Structures from Most to Least

question 236

Multiple Choice

The correct sequence of market structures from most to least competitive is

• A) pure monopoly,oligopoly,perfect competition,monopolistic competition.
• B) oligopoly,pure monopoly,perfect competition,imperfect competition.
• C) perfect competition,monopolistic competition,oligopoly,pure monopoly.
• D) perfect competition,imperfect competition,pure monopoly.
• E) perfect competition,monopolistic competition,pure monopoly,oligopoly.

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Definitions:

Kinked Demand Curve

The demand curve for the cutthroat oligopolist, which is based on the assumption that competitors will match a price cut, but will not match a price increase.

Collusive Oligopoly

A market condition where a few companies or entities cooperate to restrict competition and control prices for their mutual benefit.

Price Leadership

A situation in which one company, the price leader, sets the price of goods or services within its market and other companies in the sector follow suit.

Sticky Prices

A situation where prices of goods and services are slow to change in response to changes in supply and demand or economic conditions.