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Question : Extreme forms of the market are

Option 1: perfect competition; oligopoly

Option 2: oligopoly; monopoly

Option 3: perfect competition; monopoly

Option 4: perfect competition; monopolistic competition


Team Careers360 18th Jan, 2024
Answer (1)
Team Careers360 21st Jan, 2024

Correct Answer: perfect competition; monopoly


Solution : The correct answer is perfect competition; monopoly.

A market system with perfect competition has numerous customers and sellers, all of whom manufacture similar products. There are no entrance or departure barriers and all buyers and sellers have complete market knowledge. A monopoly is a market system in which only one supplier of a commodity exists. There are no close replacements for the product, and entry obstacles prohibit other companies from competing in the market.

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