Under Which Market Structure Are Profit Rewards Most Likely to Be

question 107

Multiple Choice

Under which market structure are profit rewards most likely to be quickly taken away by existing firms or new firms entering the industry?

• A) oligopoly
• B) pure monopoly
• C) pure competition
• D) monopolistic competition

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Definitions:

Group Membership

The state of being a part of a collection of individuals who share certain characteristics, goals, or interests.

Commons Dilemma

Commons dilemma is a situation in which individuals or groups face a choice between prioritizing their personal interests or the collective good, often involving the overuse or depletion of shared resources.

Social Dilemma

A situation in which individual interests conflict with collective well-being, leading to challenges in decision-making.

Realistic Conflict Theory

A theory that suggests competition over limited resources leads to conflict and discrimination between groups.