Concentration ratios that fall in the range of 20 to 40 percent are common for monopolistic competition. 70 to 90 percent are common for competitive markets. 30 to 50 percent are common for monopolies. 20 to 40 percent are common for oligopolies

Concentration ratios that fall in the range of 20 to 40 percent are common for monopolistic competition. 70 to 90 percent are common for competitive markets. 30 to 50 percent are common for monopolies. 20 to 40 percent are common for oligopolies

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Concentration ratios that fall in the range of
20 to 40 percent are common for monopolistic competition.
70 to 90 percent are common for competitive markets.
30 to 50 percent are common for monopolies.
20 to 40 percent are common for oligopolies

Definition Definition Form of market structure in which there are a large number of sellers of a particular product, with each seller selling somewhat differentiated but close substitutes to the product sold by other sellers. Features of monopolistic competition include: Large number of buyers and sellers Differentiated products Free entry and exit of the firms in the market

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