In the same market, consider the following different market structures: perfect
ID: 1208914 • Letter: I
Question
In the same market, consider the following different market structures: perfect competition, basic monopoly, Cournot oligopoly and Stackelberg oligopoly.
1. Which of following market structure has largest deadweight welfare loss?
a. uncertain
b. cournot oligopoly
c. basic monopoly
d. stackelberg oligopoly
2. Which market structuture has largest consumer surplus?
a.basic monopoly
b.perfect competition
c.Stackelberg oligopoly
d. Cournot oligopoly
3. Which market structure has largest output?
a. basic monopoly
b.perfect competition
c.Stackelberg competition
d. courtnot oligopoly
Explanation / Answer
1. c. basic monopoly
2. b.perfect competition
3. b.perfect competition
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