Companies with monopolistic market positions achieve pricing authority by establishing entry barriers and maintaining exclusive market control. Such c...
GMAT Craft and Structure : (Structure) Questions
Companies with monopolistic market positions achieve pricing authority by establishing entry barriers and maintaining exclusive market control. Such comprehensive market control enables monopolistic enterprises to be _______ firms that are simply oligopolistic (functioning with some competition): oligopolistic sectors such as commercial aviation experience competitive forces from competing businesses, yet their market framework lacks complete pricing authority, unlike monopolistic public utilities.
Which choice completes the text with the most logical and precise word or phrase?
combined with
differentiated from
united with
patterned after
Step 1: Decode and Map the Passage
Passage Analysis Table
| Text from Passage | Analysis |
|---|---|
| "Companies with monopolistic market positions achieve pricing authority by establishing entry barriers and maintaining exclusive market control." |
|
| "Such comprehensive market control enables monopolistic enterprises to be ______" |
|
| "firms that are simply oligopolistic (functioning with some competition):" |
|
| "oligopolistic sectors such as commercial aviation experience competitive forces from competing businesses, yet their market framework lacks complete pricing authority," |
|
| "unlike monopolistic public utilities." |
|
Main Point
Monopolistic companies have fundamentally different market control compared to oligopolistic firms due to their complete pricing authority versus limited competitive constraints.
Step 2: Interpret the Question Precisely
This is a fill-in-the-blank question asking us to choose the best logical connector. The answer must create the right relationship between what comes before and after the blank.
Step 3: Prethink the Answer
- From our analysis, monopolistic companies have complete market control and pricing authority, while oligopolistic companies face competition and lack complete pricing authority
- The blank needs to express the relationship between these two different types of market structures
- The right answer should express that monopolistic firms are distinct or separate from oligopolistic firms, emphasizing their different levels of market power and pricing authority
combined with
- This suggests monopolistic and oligopolistic firms work together or are joined
- Contradicts the entire passage which emphasizes their different characteristics and market power
differentiated from
- This perfectly captures the distinction the passage establishes between monopolies and oligopolies
- Matches our prethinking about showing separation based on different market characteristics
united with
- Similar problem to choice A - suggests connection rather than distinction
- Goes against the passage's emphasis on different market structures and capabilities
patterned after
- This would mean monopolies copy or model themselves after oligopolies
- Contradicts the passage which shows monopolies as having superior market control