In _______ Market Structure, a Firm's Output Depends _______

question 91

Multiple Choice

In _______ market structure, a firm's output depends _______.

• A) an oligopoly; only on its own marginal revenue and marginal cost curves
• B) an oligopoly; in part on its competitors' price and quantity decisions
• C) a monopolistically competitive; in part on its competitors' price and quantity decisions
• D) a monopolistically competitive; only on its marginal revenue curve

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Definitions:

Demand

The desire for a particular product or service coupled with the ability and willingness to pay for it.

Perfectly Elastic

A situation in economics where the quantity demanded or supplied responds infinitely or vastly to any change in price.

Elasticity Measures

These are metrics used in economics to assess how the quantity demanded or supplied of a good changes in response to changes in price or other factors.

Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good, with elasticity greater than one indicating a high responsiveness.