Asked by Rodina M. Richard on May 07, 2024

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Under which types of competition,individual firms have some control over price?

A) pure competition and a monopoly
B) monopolistic competition and an oligopoly
C) an oligopoly and pure competition
D) a pure monopoly and monopolistic competition

Monopolistic Competition

A market structure characterized by many firms selling products that are similar but not identical, allowing for some degree of market power and price setting by individual firms.

Oligopoly

A market structure characterized by a small number of firms that control the majority of the market share, leading to limited competition.

  • Differentiate among the various types of market competition.
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FP
Francisco PuentesMay 10, 2024
Final Answer :
B
Explanation :
In monopolistic competition, firms have some control over price because they differentiate their products from those of competitors, allowing them to charge slightly higher prices within a competitive range. In an oligopoly, a few firms dominate the market, and each has some control over pricing, often leading to price leadership or collusion to maintain prices at a profitable level.