Considering the Spectrum of Market Structures and Moving from Pure

question 150

Multiple Choice

Considering the spectrum of market structures and moving from pure competition to pure monopoly we can say that

• A) entry barriers get lower but exit gets more difficult.
• B) entry becomes harder but exit becomes easier.
• C) entry gets harder and the number of firms dwindles.
• D) none of the above.

---

Definitions:

Midpoint Formula

A method used in economics to calculate the percentage change in quantity demanded or supplied, given two points, by dividing the change by the midpoint between the two points.

Price Elasticity

An economic concept indicating the responsiveness of the quantity demanded of a product to changes in its price, with high elasticity indicating greater sensitivity.

Foreign Travel

The activity of traveling outside one's home country for leisure, business, or other purposes.

Quantity Demanded

The amount of a good or service consumers are willing and able to purchase at a given price.