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Direction: Study the following questions carefully and choose the right answer.
Important for :
2
What type of competitive structure exists when a few sellers control a large portion of the supply of a product?
» Explain it
B
An oligopoly is a market structure in which a few firms dominate. When a market is shared between a few firms, it is said to be highly concentrated. Although only a few firms dominate, it is possible that many small firms may also operate in the market.

Ex. Airlines or Telecom companies in India, etc

Hence, the option B is correct.

 
3
The type of competitive structure that exists when a firm with many potential competitors attempts to develop a differential marketing strategy to establish its own market share is:
» Explain it
C
Monopolistic competition is a type of imperfect competition such that many producers sell products that are differentiated from one another (e.g. by branding or quality) and hence are not perfect substitutes. In monopolistic competition, a firm takes the prices charged by its rivals as given and ignores the impact of its own prices on the prices of other firms.

Ex. Coaching institutes serving different competitive exam aspirants in India.

Hence, the option C is correct.