What Is the Term for a Market Structure in Which

question 26

Multiple Choice

What is the term for a market structure in which there are many firms who sell a differentiated product and have some control over the price of the products they sell?

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

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Definitions:

Consumer Surplus

The separation between what consumers envisage paying for a good or service and the amount they actually disburse.

Producer Surplus

The gap between the price that sellers are ready to take for a product or service and the actual price they get from the market.

Deadweight Loss

An economic inefficiency that arises when the balance for a product or service is either not attained or cannot be attained.

Consumer Surplus

The differential between the overall amount consumers are willing and financially prepared to spend on a good or service, and what they end up spending.