Question
Economics Question on Money Market
Which of the following are correct regarding market structures:
A. Monopolistic competition is characterised by free entry/exit with each firm producing differentiated goods.
B. Oligopoly allows free entry.
C. Cartels are formed when firms explicitly collude and maximise joint profits.
D. Monopoly power arises when price > AC
E. Competitive market does not allow free entry.
Choose the correct answer from the options given below:
A
A and B only
B
A and E only
C
C and D only
D
A and C only
Answer
A and C only
Explanation
Solution
The correct option is(D): A and C only