If Competitive Market Circumstances Are Such That There Are Few

question 187

Multiple Choice

If competitive market circumstances are such that there are few sellers who are sensitive to each other's prices, and the purpose of advertising is to inform but avoid price competition, then ________ must exist in the industry.

• A) a pure monopoly
• B) monopolistic competition
• C) pure competition
• D) an oligopoly
• E) oligopolistic competition

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Definitions:

Socially Expected

Behaviors or norms that are anticipated and considered appropriate within a given society or cultural context.

Normative Social Influence

The force exerted by others that prompts us to align our actions to be cherished and welcomed by them.

Asch's Line-Judgment Experiment

A study on conformity that demonstrated the power of social pressure on individuals to conform to an incorrect majority view.

Deindividuation

A psychological state where an individual loses self-awareness and self-restraint, often occurring within group settings.