31.Which of the following markets have the fewest number of firms? A. Monopoly B. Perfect competition C. Oligopoly D. Monopolistic competition
Question
31. Which of the following markets have the fewest number of firms?
A. Monopoly
B. Perfect competition
C. Oligopoly
D. Monopolistic competition
Solution
To determine which of the listed market structures has the fewest number of firms, we need to analyze each type:
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Monopoly: This market structure consists of a single firm that dominates the market. So, there is only one firm.
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Perfect Competition: This type of market includes a large number of small firms that sell identical products. Therefore, it does not have a limited number of firms.
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Oligopoly: In this market structure, a small number of large firms dominate the market. While there may be a few firms, it is still more than one.
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Monopolistic Competition: This market has many firms that sell differentiated products. Similar to perfect competition, it involves many firms.
Conclusion
Among the options provided, Monopoly has the fewest number of firms, specifically only one firm in the market. Therefore, the answer is:
Final Answer: A. Monopoly
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