Which market structure is best suited for technological innovation? Explain your answer.

Out of all the four market structures (Monopoly, Oligopoly, Monopolistic Competition, and Perfect Competition), technological advancement is best suited in the oligopoly market. The reasons why the oligopoly market structure is best suited for technological advancement are as follows:

1. High entry and exit barriers.

2. The fewer number of firms.

3. A high degree of control over market price and output determination.

4. Interdependence among firms, et cetera.