When a Few Rival Groups Spend Money in Competition for a License

question 186

Multiple Choice

When a few rival groups spend money in competition for a license that grants them a monopoly for the provision of cable TV for an area, economists label this activity

• A)perfect competition.
• B)oligopoly.
• C)monopolistic competition.
• D)rent seeking.

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Definitions:

Payments

Transactions or transfers of money in exchange for goods or services, or as fulfillment of obligations.

Interest Rate

The fee, indicated as a percentage of the principal, that a borrower incurs from a lender for availing themselves of resources.

Train Sets

Collections of rail vehicles that form a complete train, often designed to operate together and include locomotives and passenger or freight cars.