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    Question

    In which market structure does a firm have the autonomy

    to set prices?
    A Perfect Competition Correct Answer Incorrect Answer
    B Monopolistic Competition Correct Answer Incorrect Answer
    C Oligopoly Correct Answer Incorrect Answer
    D Monopoly Correct Answer Incorrect Answer

    Solution

    In a monopoly market structure, a single firm controls the entire market supply, granting it the power to set prices without direct competition. This unique position allows the monopolist to influence market prices significantly, often leading to higher prices for consumers due to the lack of alternative suppliers.

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