The Market Structure That Is Characterized by Only a Small

question 34

Multiple Choice

The market structure that is characterized by only a small number of producers is referred to as a(n) :

• A)oligopoly.
• B)perfect competition.
• C)monopoly.
• D)monopolistic competition.

---

Definitions:

Market Supply Curve

A graphical representation showing the relationship between the price of a good and the total output of the industry at that price.

Average Variable Costs

The cost that varies with the level of output, divided by the quantity of output produced, reflecting the variable expenses per unit.

Economic Profit

The difference between total revenue and the total costs of production, including opportunity costs not just explicit costs.

Long Run Equilibrium

A state in which all factors of production and costs are variable, and firms no longer have an incentive to enter or exit an industry, leading to a stable market condition.