Match the characteristics with their market structure:(a) Firm has control over quantity of output but it must take into account reactions of competitors.(b) Firm will tend to set output so that it earns maximum profits.
- A(a) Oligopoly, (b) Pure Monopoly
- B(a) Monopolistic competition, (b) Oligopoly
- C(a) Pure Monopoly, (b) Pure competition
- D(a) Oligopoly, (b) Pure competition
Solution & Step-by-step Explanation
* Statement (a): In an Oligopoly, there are a few large firms dominant in the market. Each firm can influence output and price, but must strategically account for the likely actions and reactions of its close competitors (interdependence).Statement (b): A Pure Monopoly features a single seller in the market with absolute power over supply and pricing, allowing it to set the exact output level where profit is maximized ().