Q12
In which of the following market structure is the degree of control over the price of its product by a firm very large?
A.
Imperfect competition
B.
Perfect competition
C.
Monopoly
AnswerD.
In A and B both
Answer: Option C
Solution
Answer: Option C
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. Consumers do not have any alternative and must pay the price set by the seller.