The Condition Where a Single Firm Can Supply an Entire

question 134

Multiple Choice

The condition where a single firm can supply an entire market at a lower unit cost than could a number of competing firms defines a

• A) dominant firm oligopoly.
• B) structured market.
• C) natural monopoly.
• D) trust.
• E) duopoly.

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Definitions:

Interest Rate

An interest rate is the proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan remaining.

Marginal Rate of Substitution

The rate at which a consumer is willing to substitute one good for another, maintaining the same level of utility.

Utility Function

A formula used by economists to map the degree of happiness or satisfaction one derives from consuming quantities of goods and services.

Consumption

The action of using up goods and services to satisfy needs or desires.