[amp_mcq option1=”Perfect competition” option2=”Monopoly” option3=”Monopolistic competition” option4=”None of these” correct=”option2″]<\/p>\n
The correct answer is B. Monopoly<\/strong>.<\/p>\n In a monopoly market, there is only one seller of a good or service. This means that the monopolist has a great deal of market power and can charge a higher price than they would in a more competitive market. The monopolist also has to spend money on advertising and marketing to convince consumers to buy their product, which are known as selling costs.<\/p>\n In a perfect competition market, there are many sellers of a good or service. This means that each seller has very little market power and cannot charge a higher price than the market price. The sellers in a perfectly competitive market also do not have to spend money on advertising and marketing, as consumers are already aware of the products that are available.<\/p>\n In a monopolistic competition market, there are many sellers of a good or service, but each seller offers a slightly different product. This means that each seller has some market power, but not as much as a monopolist. The sellers in a monopolistically competitive market also have to spend money on advertising and marketing to convince consumers to buy their product.<\/p>\n Therefore, the only market structure in which the producer is isolated and selling costs are incurred is a monopoly.<\/p>\n","protected":false},"excerpt":{"rendered":" [amp_mcq option1=”Perfect competition” option2=”Monopoly” option3=”Monopolistic competition” option4=”None of these” correct=”option2″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-43826","post","type-post","status-publish","format-standard","hentry","category-economics","no-featured-image-padding"],"yoast_head":"\n