If Firms in a Particular Market Sell Similar or Identical

question 203

Multiple Choice

If firms in a particular market sell similar or identical products, then the market is
(i) perfectly competitive.
(ii) monopolistically competitive.
(iii) an oligopoly.

• A)(i) or (ii) only
• B)(ii) or (iii) only
• C)(i) or (iii) only
• D)(i) only

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Definitions:

Low Entry Barriers

Conditions that make it easy for new competitors to enter a market, including minimal financial, regulatory, or technological requirements.

Homogeneous Product

A product that is identical in all aspects from all producers, making it indistinguishable among suppliers.

Labor Force Participation

The ratio of the labor force to the total working-age population, indicating the percentage of people working or seeking work.

Professions

Occupations that require specialized education, training, and skills, often associated with professional licensure.