The Existence of a Large Number of Firms in Monopolistic

question 29

Multiple Choice

The existence of a large number of firms in monopolistic competition

• A)means that each firm has a small market share.
• B)makes it possible for each firm's price to deviate by a large amount from the average price of the other firms.
• C)means that a firm must pay attention to the behaviour of all of its competitors.
• D)makes collusion highly likely.
• E)means that each firm is a price taker.

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Definitions:

Intellectual Convictions

Firmly held beliefs or opinions that are rooted in reasoning and knowledge rather than emotion or personal preference.

Pragmatist

An individual who approaches problems and situations with a practical and logical mindset, focusing on solutions and results rather than abstract principles.

Rationalization

The process of replacing traditional and emotional thought processes with reason and practicality, often associated with the development of bureaucratic systems.

Industrial Revolution

A period of major industrialization from the late 18th to early 19th century, which dramatically changed society with technological advancements and urbanization.