If It Is Not Profitable for More Than One Firm

question 167

Multiple Choice

If it is not profitable for more than one firm to be in an industry, we have an example of

• A) monopoly due to ownership of key resources.
• B) monopoly due to governmental entry restrictions.
• C) monopoly due to economies of scale.
• D) pure competition.

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Definitions:

Trichromatic Theory

A theory of color vision that proposes three types of color receptor cells in the eye, corresponding to three primary colors.

Color Vision

Color vision is the capability of an organism to distinguish objects based on the wavelengths (or frequencies) of the light they reflect, emit, or transmit.

Weber's Law

A principle in psychophysics stating that the smallest change in a stimulus that can be detected is a constant proportion of the baseline stimulus.

Noticeable Difference

The smallest change in a stimulus that can be detected by the senses.