Given below are two statements:
One is labelled as Assertion A and the other is labelled as Reason R.
Assertion ‘A’: The theories of price determination under oligopoly are found to be inapplicable to real life market conditions.
Reason ‘R’: Real life oligopoly market situation is characterized by small number of sellers, interdependence of decision making, barriers to entry, indeterminate price and output; all leading to wide variety of situations.
In the light of the above statements, choose the most appropriate answer from the options given below:
1
Both A and R are correct and R is the correct explanation of A.
2
Both A and R are correct but R is not the correct explanation of A.
3
A is correct but R is not correct.
4
A is not correct but R is correct