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Which of the following best states the main difference between a monopoly and an oligopoly?

  • Question 16b of 25 - Market structures

  • Maximum Attempts: 1
  • Question Type: Multiple Choice
  • Maximum Score: 2
  • Question: Which of the following best states the main difference between a monopoly and an oligopoly?
  • Answers:
  1. Oligopolies involve more than one company while monopolies involve only one.
  2. Neither a monopoly nor an oligopoly presents significant barriers to entering the industry.
  3. Both monopolies and oligopolies involve a very low level of competition.
  4. Monopolies have a slightly lower level of market concentration than oligopolies.

The correct answer is: Oligopolies involve more than one company while monopolies involve only one. An oligopoly is a market structure with a small number of companies while a monopoly is a market structure with only a single company.

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