Of the Following Market Structures, Which Are Considered Imperfectly Competitive

question 583

Multiple Choice

Of the following market structures, which are considered imperfectly competitive?
I.
Perfect competition
II.
Monopoly
III.
Monopolistic competition
IV.
Oligopoly

• A)III only
• B)II and III
• C)III and IV
• D)II, III, and IV

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Definitions:

Fixed Cost

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Unit Price

The cost of a single unit of a product, allowing consumers to compare the prices of items sold in different sizes or quantities.

Unit Variable Cost

The cost associated with producing one additional unit of a product, including labor, material, and other variable costs.

Profit Maximized

The condition in which a firm achieves the highest possible level of profit through the optimization of production and pricing strategies.