Although There Are Many Reasons Why a Market Can Be

question 2

Multiple Choice

Although there are many reasons why a market can be non-competitive, the principal economic difference between a competitive and a non-competitive market is:

• A) the number of firms in the market.
• B) the extent to which any firm can influence the price of the product.
• C) the size of the firms in the market.
• D) the annual sales made by the largest firms in the market.
• E) the presence of government intervention.

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Definitions:

Market Shares

The segment of a market dominated by a specific company or product, typically represented by a percentage of the overall sales within that market.

Composing

The act of creating or forming something, often referred to in the context of writing or music.

Concentration Ratios

Measures that indicate the extent of market control held by the largest firms within an industry, often used to assess competition levels.

Degree of Competition

The intensity of competitive actions among companies within an industry, influenced by the number of competitors, product differentiation, and market entry barriers.