State true or false and justify your answer:

Perfect competition always provides a lower price than monopolistic competition or an oligopoly.

The statement: Perfect competition always provides a lower price than monopolistic competition or an oligopoly, is True.

This is because in a perfect competition market structure there are numerous firms that produce homogenous products and they are independent to decide their product value. Therefore, in a perfect competition market model, there are higher chances that the products can always be bought at a lower price as compared to the oligopoly or monopolistic competition. In the case of monopolistic competition and oligopoly market structure, differentiated goods are produced, so if the price is lowered of one product there will always be a compromise with the quality of the product.