Question

What are the 3 main characteristics for a "market structure"?

number of executives, ease of entry and exit by firms, number of products

number of firms, amount of revenues, number of products

number of executives, ease of entry and exit by firms, degree of product differentiation

number of firms, ease of entry and exit by firms, degree of product differentiation

Answer 1

Main characteristics of market are- No. Of Sellers (which are high in perfect competition and monopolistic competition, a few in oligopoly and only one in monopoly), Barriers to entry and exit ( in perfect competition there is no barrier, while in monopolistic competition it is very low, in oligopoly it is high but in monopoly there is a complete barrier to entry or exit the market), production differentiation or homogeneity ( in perfect competition, products are perfectly homogeneous. In monopolistic competition, products are differentiated with availability of close substitutes. In oligopoly, products can be homogeneous or differentiated. In monopoly product is homogeneous with no close substitute available.)

Answer- option D