Which of the Following Is True of a Typical Firm

question 107

Multiple Choice

Which of the following is true of a typical firm in a monopolistically competitive industry?

• A)Product differentiation allows a successful firm to emerge as a market leader in the industry.
• B)All firms have identical cost structures.
• C)The more successful firms have an incentive to merge in order to exert greater market power.
• D)Each firm acts independently.

---

Definitions:

Health Care

A broad field involving the provision of medical services to prevent, treat, and manage illness, as well as to preserve mental and physical well-being through the services offered by the medical, nursing, and allied health professions.

Motor Vehicle

A self-propelled vehicle used for transportation of people or goods on roads.

Tailgating

The practice of driving too closely behind another vehicle, reducing the reaction time to stop safely.

Seatbelts

Safety devices designed to secure occupants of a vehicle against harmful movement that may result during a collision or a sudden stop.