A Form of Industry Structure Characterized by a Few Firms

question 195

Multiple Choice

A form of industry structure characterized by a few firms each large enough to influence market price is

• A) perfect competition.
• B) monopolistic competition.
• C) oligopoly.
• D) monopoly.

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Definitions:

Full Employment

An economic situation in which all available labor resources are being used in the most efficient way possible, essentially meaning that unemployment is at the lowest possible level without causing inflation.

Aggregate Supply Curve

A graphical representation that shows the total amount of goods and services that producers in an economy are willing and able to supply at different price levels over a period.

Downward Rigidity

A circumstance in which wages or prices are resistant to decrease even in conditions where economic theory suggests they should fall.

Recessions

A temporary downturn in the economy marked by decreased trade and industrial production, typically recognized by a decrease in Gross Domestic Product (GDP) for two consecutive quarters.