When an Industry Has Only a Handful of Very Large

question 239

Multiple Choice

When an industry has only a handful of very large sellers which of the following exists?

• A)Duopoly
• B)Perfect competition
• C)Oligopoly
• D)Monopolistic competition
• E)Monopoly

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Definitions:

Producer Surplus

The difference between the amount producers are willing to accept for a good or service and the actual amount they receive, reflecting profits.

Deadweight Loss

A loss of economic efficiency that can occur when equilibrium for a good or service is not achieved or is unachievable.

Tariff Revenue

The income generated by a government from imposing taxes on imported goods.

World Price

The global market price of a product or service, determined by worldwide supply and demand factors.