When Only a Small Number of Producers Compete with Each

question 117

Multiple Choice

When only a small number of producers compete with each other, it is a defining characteristic of

• A) monopolistic competition.
• B) efficient competition.
• C) oligopoly.
• D) inelastic supply.

---

Definitions:

Expected Value

A calculation reflecting the average expected outcome of a probabilistic event, considering all possible outcomes weighted by their chances of occurrence.

Probability

The measure of the likelihood that an event will occur, quantified as a number between 0 and 1.

Invest

To allocate resources, usually money, with the expectation of generating an income or profit.

Scrap Value

The estimated resale value of an asset at the end of its useful life, often considered in depreciation calculations.