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Which of the following are market structures that can exist in a free-market

system?
Check all that apply.
A. Oligopoly
B. Government planning
C. Communism
D. Pure competition
E. Monopolistic competition

1 Answer

7 votes

Answer:

The market structures that can exist in a free-market system are:

A. Oligopoly

D. Pure competition

E. Monopolistic competition

Step-by-step explanation:

In a free-market system, multiple market structures can coexist. Oligopoly refers to a market structure in which a few large firms dominate the market.

Pure competition refers to a market structure where there are many small firms selling homogeneous products. Monopolistic competition refers to a market structure with many firms selling differentiated products.

Government planning and Communism are not market structures that exist in a free-market system. Government planning refers to an economic system where the government determines production and allocation decisions, which is contrary to the principles of a free-market system.

Communism, on the other hand, is a socioeconomic ideology that advocates for the collective ownership of resources and the absence of private property rights, which also does not align with a free-market system.

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