If a Firm Has Substantial Market Power,it Must Be Operating

question 114

Multiple Choice

If a firm has substantial market power,it must be operating in an industry that would be classified as

• A) a monopoly.
• B) perfectly competitive.
• C) monopolistically competitive.
• D) perfectly competitive or monopolistically competitive.
• E) perfectly competitive or monopolistic.

---

Definitions:

Probability

The measure of the likelihood that an event will occur, expressed as a number between 0 and 1 where 1 indicates certainty.

Random Variable

A variable with an uncertain future value.

Uncertain

The state of having incomplete knowledge or information, leading to unpredictability in outcomes and decision-making.

Economics

The social science that studies the production, distribution, and consumption of goods and services.