How Did Costa Rica Avoid the Polarization and Violence Typical

question 21

Multiple Choice

How did Costa Rica avoid the polarization and violence typical of the Cold War era in Central America?

• A) It had a large indigenous population.
• B) It was not as politically explosive as other neighboring countries.
• C) Exploitative colonial hierarchies were a burden to the country.
• D) It had a very strong army.

---

Definitions:

Monopolistic Competition

A market structure characterized by many producers selling products that are similar but not identical, allowing for competition based on quality, price, and brand.

Nondiscriminating Monopolist

A monopolist that charges all consumers the same price for its product or service, regardless of the market segment.

Profit-Maximizing

The process or strategy of adjusting production and pricing to achieve the highest possible profit.

Socially Optimal Price

The price of a product that results in the most efficient allocation of an economy's resources and that is equal to the marginal cost of the product.