Which of the Following Types of a Competitive Structure Exists

question 123

Multiple Choice

Which of the following types of a competitive structure exists when a firm produces a product that has no close substitutes?

• A) Monopoly
• B) Oligopoly
• C) Monopolistic competition
• D) Pure competition
• E) Mixed competition

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Definitions:

Perfectly Elastic

Describes a situation in economics where the demand or supply for a product can vary infinitely with a small change in price.

Inelastic

A situation in which the demand for a product does not increase or decrease correspondingly with a fall or rise in its price.

Perfectly Elastic

Describes a situation where the quantity demanded or supplied changes infinitely in response to any change in price.

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the equilibrium price, where market supply and demand balance each other.