If Firms in an Industry Differentiated Their Products and Made

question 31

Multiple Choice

If firms in an industry differentiated their products and made economic profits in the short- run, what other characteristic would be important to determine if this is an oligopoly or a monopolistically competitive market?

• A) If the good being sold is a normal or inferior good
• B) The number of firms in the market
• C) The number of buyers in the market
• D) The number of close substitutes for the good being produced

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Definitions:

Quantity Demanded

Quantity demanded is the total amount of a good or service that consumers are willing and able to purchase at a given price over a specified period.

Demand Schedule

A tabular representation showing the quantity of a good that consumers are willing and able to purchase at different prices, holding other factors constant.

Excise Tax

A tax directly levied on certain goods, services, or activities, often included in the price of the product.

Improved Technology

Advances or enhancements in technology that lead to better efficiency, productivity, or outcomes in various fields.