Question

_____ is the most visible exception to the inverse relationship of competitive market structure and competitive

• A. Perfect competition
• B. Pure monopoly
• C. Oligopoly
• D. None of the above

Answer 1

Answer: (B)

Pure monopoly

Competitive behaviour and competitive market structure are, in general, inversely related; the more competitive the market structure, less competitive is the behaviour of the firms. On the other hand, the less competitive the market structure, the more competitive is the behaviour of firms towards each other. Pure monopoly is the most visible exception. In a pure monopoly, there is only one seller, there is no competition in the market structure.