Which of the Following Firms Is Likely to Have the Greatest

question 115

Multiple Choice

Which of the following firms is likely to have the greatest market power?

• A)A utility company
• B)A farmer
• C)A grocery store
• D)A local electronics retailer

---

Definitions:

Perfectly Competitive

A market structure characterized by a large number of small firms, homogeneous products, free entry and exit, and perfect information, where no single firm can influence the market price.

Disequilibrium

A situation in a market where supply does not equal demand, leading to a temporary imbalance and potential for price changes.

Incentive

A factor, either monetary or non-monetary, that motivates individuals or entities to perform an action or engage in a certain behavior.

Long Run

A period of time in economics sufficient for all markets to adjust to changes, including those of supply and demand.