Question

Given below are two statements :
Statement (I) : Monopsony is a perfect competition.
Statement (II) : Monopoly is an imperfect competition.
In light of the above statements, choose the most appropriate answer from the options given below.

• A. Both Statement (I) and Statement (II) are true.
• B. Both Statement (I) and Statement (II) are false.
• C. Statement (I) is true but Statement (II) is false.
• D. Statement (I) is false but Statement (II) is true.

Hint:

Remember:
- "Mono-" means single.
- "-poly" refers to seller (Monopoly = single seller).
- "-psony" refers to buyer (Monopsony = single buyer).
Both are extreme forms of imperfect competition.

Answer 1

The Correct Option is D