The Term Which Is Used to Describe a Market Structure

question 32

Multiple Choice

The term which is used to describe a market structure where there are many buyers of a differentiated product is:

• A) monopsony
• B) oligopsony
• C) monopsonistic competition
• D) bilateral monopoly
• E) unilateral monopsony

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Definitions:

Equilibrium Quantity

The quantity of goods or services supplied that is equal to the quantity demanded at the equilibrium price.

Marginal Social Cost

The cost to society of producing one additional unit of a good or service, incorporating both the private costs and any external costs.

Consumer Surplus

The gap observed between the consumer's desired price for a good or service and the price that is actually paid.

Marginal Benefit

The extra benefit or pleasure that someone receives from using an additional unit of a specific good or service.