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Answer : 3. "Oligpoly"
In which of the following market structures, there is a variable demand curve?
5Q:
In which of the following market structures, there is a variable demand curve?
- 1Perfect competitionfalse
- 2Monopolyfalse
- 3Oligpolytrue
- 4Monopolistic competitionfalse
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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.