CameraIcon

SearchIcon

MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Monopsony

A market situ...

Question

A market situation in which there are only few firms producing slightly differentiated products which are close substitutes is _______.

A

monopolistic competition

No worries! We‘ve got your back. Try BYJU‘S free classes today!

B

oligopoly

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

C

duopoly

No worries! We‘ve got your back. Try BYJU‘S free classes today!

D

perfect competition

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is B oligopoly
An oligopolistic market structure is where few large firms control the majority of the market and can choose to collude to influence the price charged and behave as a monopoly. One of the most famous cartels is OPEC, they collectively influence the world market price of oil.

Suggest Corrections

thumbs-up

0

Similar questions

Q. Firm's demand curve shows highest elasticity in a state of monopolistic competition (in which there is a large number of close substitutes) than in a state of monopoly or perfect competition.

Q. A monopolistic competition is defined as that market structure in which each seller produces a _______.

Q. State whether the following statement are TRUE and FALSE.

1. There is no price discrimination under Monopolistic competition.

2. In a monopoly market, firm and industry are the same.

3. Product differentiation is not possible under perfect competition.

4. Under perfect competition, price is determined by equilibrium of demand and supply.

Q. A firm under monopolistic competition cannot influence market price.

Q. Monopolistic competition refers to the market structure in which there:

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

The Monopoly Problem

ECONOMICS

Watch in App

explore_more_icon

Explore more

Standard XI Economics

Join BYJU'S Learning Program

CrossIcon