Question

Which of the following are the four main competitive industry structures? (Check all that apply.)

Multiple select question.
perfect monopoly
monopolistic competition
perfect competition
oligopoly
monopoly
monopolistic oligopoly

Answer 1

The four main competitive industry structures are perfect competition, monopolistic competition, oligopoly, and monopoly.

Therefore, the correct options are: 'perfect competition, monopolistic competition, oligopoly, and monopoly.'

Step-by-step explanation:

A competitive industry allows firms to freely enter and exit the market and has few barriers to entry.

The four main competitive industry structures are:

1. Perfect competition: characterized by a large number of small firms producing homogeneous products, with no barriers to entry or exit.
2. Monopolistic competition: characterized by a large number of firms producing differentiated products, with low barriers to entry.
3. Oligopoly: characterized by a small number of firms dominating the market and facing interdependence in decision-making.
4. Monopoly: characterized by a single firm having control over the entire market, with high barriers to entry.

The categories differ because of the following characteristics: The number of producers is many in perfect and monopolistic competition, few in oligopoly, and one in monopoly.