Multiple choice

In which form of the market structure is the degree of control over the price of its product by a firm very large?

  1. Monopoly

  2. Imperfect competition

  3. Oligopoly

  4. Perfect competition

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A Correct answer
Explanation

Since in monopoly market, there is no close substitute of product available, the monopolist may use his monopolistic power in any manner in order to realize maximum revenue. He may also adopt price discrimination. Hence, monopolist's degree of control over price is very large.

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