Multiple choice

Which of the following concepts is considered as a myth?

  1. Oligopoly

  2. Perfect competition

  3. Monopoly

  4. Imperfect competition
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

 In reality it is almost impossible that all firms sell identical products, all firms are price takers, All firms have a relatively small market share, buyers know the nature of the product being sold and the prices charged by each firm and the industry is characterized by freedom of entry and exit. Hence, perfect competition is considered a myth.

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