Which market conditions enable firms to

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Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Admission of a Partner

Question:

Which market conditions enable firms to earn higher profits?

Options:

Imperfect competition

Oligopoly

Perfect competition

Monopoly

Correct Answer:

Monopoly

Explanation:

The correct answer is option 4- Monopoly.

Monopoly market conditions enable firms to earn higher profits.

The monopoly condition or limited competition enables the concern to earn high profits which leads to higher value of goodwill.