In what type of market do the actions of any one seller have a significant impact on the profits of all other sellers?

In what type of market do the actions of any one seller have a significant impact on the profits of all other sellers? A. A monopoly B. Perfect competition C. Monopolistic competition D. An oligopoly

Solutions

Expert Solution

Option d) is correct. An Oligopoly.

Reason:

Economists call this situation imperfect competition. A particular type of it is called oligopoly. The essence of an oligopolistic market is that there are only few sellers. As a result, the actions of any one seller in the market can have a large impact on the profits of all the other sellers.

Rahul Sunny answered 1 year ago

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