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Commerce · Q76

Economics

Graduate and Post Graduate · Commerce · question 76

Q76

In which form of the market structure is the degree of control over the price of its product by a firm very large?

A.
Monopoly
Answer
B.
Imperfect condition
C.
Oligopoly
D.
Perfect competition

Answer: Option A

Solution

Answer: Option A
Solution:
In Monopoly market structure the degree of control over the price of its product by a firm very large. In a monopoly type of market structure, there is only one seller, so a single firm will control the entire market. It can set any price it wishes since it has all the market power.