________ Is the Market Situation in Which There Are Many

question 257

Multiple Choice

________ is the market situation in which there are many sellers in a market and no seller is large enough to dictate the price of a product.

• A) Oligopoly
• B) Monopolistic competition
• C) Perfect competition
• D) Microeconomic competition

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Definitions:

Illegal Price-Fixing

An unlawful agreement between competitors to set prices at a certain level, generally resulting in unfair competition and higher prices for consumers.

DuPont Cellophane Case

The antitrust case brought against DuPont in which the U.S. Supreme Court ruled (in 1956) that while DuPont had a monopoly in the narrowly defined market for cellophane, it did not monopolize the more broadly defined market for flexible packaging materials. It was thus not guilty of violating the Sherman Act.

Relevant Market

The market segment in which a company competes, defined by its products, customers, and geographic area.

Structure Versus Behavior

A distinction in competition policy and economic regulation focusing on the organization and arrangements of firms (structure) versus their actual conduct (behavior) in the market.