Which of the Following Is Most Characteristic of a Monopolistically

question 38

Multiple Choice

Which of the following is most characteristic of a monopolistically competitive market?

• A)Firms engage in strategic behaviour.
• B)There are many small firms in the industry.
• C)Economic profits are often positive in the long run.
• D)Each firm faces a horizontal demand curve.
• E)All firms are price takers.

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Definitions:

Superseding Cause

An intervening cause that alters the natural sequence of events and relieves a defendant from liability for harm caused after the intervention.

Legal Duty

An obligation imposed by law where an individual is required to adhere to a standard of reasonable care while performing any acts that could harm others.

Superseding Cause

refers to an unforeseeable event that interrupts the chain of causation and becomes the primary reason for an injury, thereby relieving the defendant from liability in a negligence claim.

Causal Chain

A sequence of events where each event is the result of the preceding one and causes the next.