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320

Q:

In which of the following market structures, there is a variable demand curve?

  • 1
    Perfect competition
  • 2
    Monopoly
  • 3
    Oligpoly
  • 4
    Monopolistic competition
  • Show Answer
  • Workspace

Answer : 3. "Oligpoly"
Explanation :

There is freedom of entry and exit. Sellers have perfect knowledge about the market conditions. They are price taker. Price Elasticity of Demand of a firm is Infinite which means demand curve for Perfect competition is a Perfectly Elastic.

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Basic GK Economics GK

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