Using the Basic Supply/demand Framework, Economic Analysis of Market Structure

question 68

Multiple Choice

Using the basic supply/demand framework, economic analysis of market structure leads to the conclusion that:

• A) perfect competition promotes efficient outcomes, whereas the other market structures are associated with some deadweight loss.
• B) monopoly promotes efficient outcomes, whereas the other market structures are associated with some deadweight loss.
• C) oligopoly promotes efficient outcomes, whereas the other market structures are associated with some deadweight loss.
• D) monopolistic competition promotes efficient outcomes, whereas the other market structures are associated with some deadweight loss.

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Definitions:

Intermediate Disturbance Hypothesis

Species richness is greatest in communities in which disturbances are moderate in their magnitude and frequency.

Pioneer Species

Pioneer species are the first to colonize previously disrupted or damaged ecosystems, starting a chain of ecological succession that leads to increased biodiversity.

Exotic Species

Species that are introduced to a new area where they do not naturally occur, often leading to ecological disruptions.

Indicator Species

Organisms used as a sign or measure of the environmental conditions or changes in an ecosystem because of their sensitivity to such conditions.