Suppose a Single Firm Gains Control of an Industry by Preventing

question 21

Multiple Choice

Suppose a single firm gains control of an industry by preventing other firms from entering the industry. As a result, the price charged by the single firm is much higher than the price that would be charged by many different firms producing this product in a competitive market. This situation can best be described as:

• A) a market failure.
• B) a government failure.
• C) an efficient outcome.
• D) a competitive outcome.

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Definitions:

Time-series Data

Data points collected or recorded at successive times, often with equal intervals between them.

Cross-sectional Data

A type of data collected by observing many subjects at the same point of time or without regard to differences in time.

Synchronous Data

Data that is collected or updated at the same time across the system or in a coordinated manner.

Cross-sectional Data

Data collected from a population at a specific point in time, used to observe variations among subjects.