Which of the Following Market Structures Will Have Lower Prices

question 10

Multiple Choice

Which of the following market structures will have lower prices in the long run than monopoly,ceteris paribus?

• A)Perfect competition,oligopoly,and monopolistic competition.
• B)Perfect competition,but not oligopoly or monopolistic competition.
• C)Perfect competition and oligopoly,but not monopolistic competition.
• D)Oligopoly and monopolistic competition,but not perfect competition.

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Definitions:

Marginal Revenue

The additional revenue gained from selling one more unit of a good or service.

Inelastic Portion

Inelastic Portion refers to a segment of the demand curve where the price elasticity of demand is less than one, indicating consumers' demand is not highly sensitive to price changes.

Total Revenue

The gross revenue of a company, which is the sum of money obtained from selling products or services before deducting any costs.

Total Cost

The complete cost of production, combining both fixed and variable costs associated with the creation of a good or service.