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JAMB Economics 1994 Question 27

Question 27

Market Structures

Output restriction, fixing of prices, creating obstacles to free entry into the market are features of

  1. A.pure monopoly
  2. B.perfect competition
  3. C.monopolistic competition
  4. D.monopsonist competition
Show the answer and explanation

Answer: A (pure monopoly)

Explanation

A monopolist controls supply, so he can restrict output, set price and block new firms.