Match the characteristics with their market structure:
(a) MR = MP
(b) Elasticity of demand depends on pricing policies of rivals
- A(a) Pure Monopoly, (b) Monopolistic competition
- B(a) Pure competition, (b) Oligopoly
- C(a) Pure competition, (b) Pure Monopoly
- D(a) Pure Monopoly, (b) Oligopoly
Solution & Step-by-step Explanation
Characteristic (a) refers to a typo or variation of standard competitive market identity where marginal revenue equals price (MR=P), which happens in Pure competition because firms are price-takers. Characteristic (b) represents interdependence, where a firm's demand elasticity depends strongly on the pricing decisions of its few competitors, which is a defining feature of an Oligopoly market structure.