An Example of Change in the Nature of Competition Is

question 19

Multiple Choice

An example of change in the nature of competition is:

• A)increased interest in urban living.
• B)more cultural diversity.
• C)increased government regulation of commerce.
• D)the collapse of a major corporation.

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Definitions:

Monopolistic Competition

A market structure characterized by many firms selling products that are substitutes but differentiated from each other in some way.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good that buyers are willing to purchase at various prices.

Marginal Revenue

The increase in revenue that results from the sale of one additional unit of output.

Monopolistically Competitive

A market structure where many firms sell products that are similar but not identical, allowing for some degree of market power and differentiated competition.