A Key Characteristic of Competitive Markets Is the Ability of Firms

question 111

True/False

A key characteristic of competitive markets is the ability of firms to open and close businesses without unnecessary restrictions or other burdens.

---

Definitions:

Pure Monopolist

A pure monopolist is a market participant that is the sole provider of a product or service, thus controlling the entire supply and influencing price without competition.

Profit-Maximizing

A business strategy focusing on actions that increase the difference between total revenues and total costs to achieve the highest possible profit.

Economic Profit

The difference between total revenue and the total costs, including both explicit and implicit costs.

Pure Monopolist

A market structure in which a single company or entity has exclusive control over the production and sale of a particular product or service, with no close substitutes.