Based on the table showing sales information for firms in three different markets, which market structure is most likely represented if one market has many firms with similar sales, another has a few firms with dominant sales, and the third has a single firm with all sales?

• A. Monopoly, oligopoly, perfect competition
• B. Perfect competition, oligopoly, monopoly
• C. Monopolistic competition, monopoly, oligopoly
• D. Oligopoly, monopoly, perfect competition

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the characteristics of each market structure. Perfect competition involves many firms with similar sales and no single firm dominating the market. Oligopoly consists of a few firms that hold a large market share, often with dominant sales by some firms. Monopoly is characterized by a single firm controlling the entire market sales.
2. Step 2: Analyze the first market described as having many firms with similar sales. This matches the characteristics of perfect competition, where firms are numerous and sales are evenly distributed.
3. Step 3: Examine the second market with a few firms and dominant sales by some. This aligns with an oligopoly, where a small number of firms dominate the market and have significant control over sales.
4. Step 4: Look at the third market with a single firm holding all sales. This is the defining feature of a monopoly, where one firm is the sole seller in the market.
5. Step 5: Match each market description to the correct market structure based on the analysis: many firms with similar sales correspond to perfect competition, few firms with dominant sales correspond to oligopoly, and a single firm with all sales corresponds to monopoly.