Use the chart to answer the following question. Characteristics of a Market Structure Number of Barriers to Price Entry very high What market structure is being described by the characteristics in the chart? A oligopoly Product Control Firms Differentiation extreme one none B pure (perfect) competition C monopolistic competition D monopoly

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Use the chart to answer the following question.
Characteristics
of a Market Structure
Number of
Firms
one
Barriers to Price
Entry
Control
very high
extreme
What market structure is being described by the characteristics in the chart?
A oligopoly
B
pure (perfect) competition
C monopolistic competition
Product
Differentiation
none
D monopoly
Transcribed Image Text:Use the chart to answer the following question. Characteristics of a Market Structure Number of Firms one Barriers to Price Entry Control very high extreme What market structure is being described by the characteristics in the chart? A oligopoly B pure (perfect) competition C monopolistic competition Product Differentiation none D monopoly
Expert Solution
Step 1

Market structure means how different industries are classified on the basis of various characteristics, such as, nature of competition, degree of control, etc. It helps to explain the relation between the sellers and buyers, sellers and other sellers. The market structure is classified into 4 categories:

  • perfect competition
  • monopoly 
  • monopolistic competition
  • oligopoly
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