Because Most Communities Have a Large Number of Similar but Not

question 64

Multiple Choice

Because most communities have a large number of similar but not identical substitutes,the market for financial planners is BEST considered to be:

• A)a monopoly.
• B)an oligopoly.
• C)perfect competition.
• D)monopolistically competitive.

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Definitions:

Predatory Pricing

A pricing strategy where a product or service is set at a very low price with the intent of driving competitors out of the market or creating barriers to entry for potential new entrants.

Price Fixing

A practice where businesses agree on the selling price of their products or services, typically to prevent competition and increase profits, which is often illegal.

Geographical Pricing

A pricing strategy where the price of a product varies depending on the geographical location or market.

Predatory Pricing

A competitive strategy in which a business sets extremely low prices to eliminate competition and monopolize the market.