Question

Consider the market for shares of stock in a large publicly traded company. Assume each share of stock gives the owner an identical ownership share of the company. Also assume that there are many different individuals who are trying to sell shares of stock in the company at any given time on a single easily accessible website. Given the above assumptions, the market for this publicly traded company is an oligopoly a perfectly competitive market monopolistic competition a monopoly

Answer 1

First of all it should be understood that according to question there are a large number of sellers in the market

But in oligopoly and Monopoly market there are few sellers and single seller respectively

So they are eliminated

A perfect competitive market is a market structure type in which-

• there are large number of buyers and sellers in the market
• price is decided only by the market forces that is demand and supply
• there are no barriers to entry and exit
• it is assumed that both buyers and sellers are full knowledge about the market

From the given question it can be also seen that all the criteria given in the question meets to the perfect competition like single easily access to website which means anyone can gain the information or it is is available for everyone

There are also a large number of buyers and sellers

Product is also homogeneous

In a monopolistic market structure type the products are slightly differentiated in in terms of shape, size, colour, quality but perfect information is not available to buyers and sellers

The correct answer here is option B