During Certain Periods in the Past Few Decades, If One

question 90

Multiple Choice

During certain periods in the past few decades, if one of the three major breakfast cereal producers in the United States announced a price increase, the other two announced a similar price increase.This is a good example of

• A)monopolistic competition
• B)a cartel
• C)a pure monopoly
• D)the kinked demand curve model of oligopoly
• E)the price leadership model of oligopoly

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Definitions:

Democritus

An ancient Greek philosopher and a central figure in the development of the atomic theory of the universe.

Atoms

The smallest units of matter, consisting of a nucleus surrounded by electrons, which form the basic building blocks of all chemical elements.

Created

Brought into existence; something made or produced by human or artistic effort.

Idealism

The metaphysical view that the mind and its ideas are the ultimate reality.