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Can get some help on this please

Which is a market structure that can exist in a free-market system?


communism


government planning


monopolistic competition


socialist planning

1 Answer

3 votes

Answer:

monopolistic competition

Step-by-step explanation:

In a free-market system, the citizens have the most control over the resources. Meaning that there will be very little government intervention within the free-market system.

Communism, government planning, and socialist planning require the government to play a bigger role in the ownership an distribution of resources. This contradict the basic nature of the free-market system.

Monopolistic competition on the other hand, could happen in a free-market system. Especially if there is a single organization who managed to win over the market in a dominant fashion. Making the other competitors have no choice but to bail out.

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