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:

Reinforcement

In psychology and management, it's the process of encouraging or establishing a pattern of behavior by offering rewards or consequences.

Behavior

The way in which one acts or conducts oneself, especially towards others.

Transactional Leader

A leadership style that focuses on supervision, organization, and performance; leaders promote compliance through rewards and punishments.

Characteristic

A feature or quality that defines and distinguishes a person, object, or phenomenon from others.