Question

Pick the correct statement:

• A. A pure monopoly may be either regulated such as power generation or unregulated having control over natural resources or technology-driven firms
• B. Monopolistic competition is characterized by product differentiation, brand loyalty and there is no price competition
• C. In an oligopoly, there are few sellers in the market who are highly sensitive to each other's pricing and marketing strategies
• D. All of the above are correct

Answer 1

Answer: (D)

All of the above are correct

Answer 2

Each statement accurately describes characteristics of different market structures:

- Pure monopoly can be regulated or unregulated.
- Monopolistic competition involves differentiation and brand loyalty with some level of
price competition.
- Oligopolies are markets with few players, each sensitive to others’ strategies.