Of the following market structures, which has the fewest number of firms competing against each other?
A) monopolistic competition
B) oligopoly
C) perfect competition
D) Both answers A and C are correct.
B
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One way to minimize the excess burden resulting from a specific tax is to:
a. tax only wealthy firms and individuals. b. spread the tax over many goods and services. c. tax goods for which either supply or demand is inelastic. d. tax luxury items such as yachts and sports cars.
Supply and demand provides the basic explanatory framework for constructing both microeconomic and macroeconomic models
a. True b. False Indicate whether the statement is true or false
Assume that the government increases spending and finances the expenditures by borrowing in the domestic capital markets. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and GDP Price Index in the context of the Three-Sector-Model?
a. The quantity of real loanable funds per time period rises, and GDP Price Index falls. b. The quantity of real loanable funds per time period falls, and GDP Price Index falls. c. There is not enough information to determine what happens to these two macroeconomic variables. d. The quantity of real loanable funds per time period rises, and GDP Price Index rises. e. The quantity of real loanable funds per time period and GDP Price Index remain the same.
(Last Word) Art Buchwald's article "Squaring the Economic Circle" humorously describes how:
A. a person's decision not to buy an automobile eventually reduces many people's incomes, including that of the person making the original decision. B. a price increase on a single product eventually leads to rapid inflation. C. an increase in imports eventually leads to a greater increase in exports. D. a government tax rate increase eventually results in the government collecting less tax revenue than before the tax rate hike.