Question

Choose the market structures that have a product differentiation.

Monopolistic competition and monopoly

Monopolistic competition and oligopoly

Monopoly and oligopoly

Perfect competition and monopoly

Answer 1

Ans. B) monopolistic competition and oligopoly

Monopolistic comepetion and differentiated oligopoly are the market structures that have a product differentiation which gives them a market power to influence the price and quantity in the market above the other firms in the comepetitions and capture the most of the customers because of the differentiate of the product.

In perfect competition, each firm is sold the same kind of product.

In monopolist market stucture, there is only single firm in the market to sell its product.