In Which Market Structures Is the Firm Able to Earn

question 187

Multiple Choice

In which market structures is the firm able to earn long-run economic profits?

• A) Perfect competition and monopolistic competition.
• B) Monopolistic competition and oligopoly.
• C) Oligopoly and monopoly.
• D) Monopolistic competition, oligopoly and monopoly.

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Definitions:

Price-Fixing

An illegal agreement among competitors to fix prices, set output levels, or divide markets, aimed at increasing profits by reducing competition.

Product Design

The process of creating a new product to be sold by a business to its customers, encompassing concept, development, and manufacturing stages.

Regulation

Rules or directives made and maintained by an authority to regulate behavior, usually in the form of laws or regulations.

High Profits

Significant financial gains exceeding the average or expected profit margins in a business's operations.