In a Given Market, a Large Number of Firms Sell

question 297

Multiple Choice

In a given market, a large number of firms sell a similar product. Consumers think that each firm's product is somewhat different from that of its competitors. This market is

• A) perfectly competitive.
• B) monopolistically competitive.
• C) equivalent to a monopoly because consumers think the products are different.
• D) equivalent to an oligopoly because consumers think the products are different.

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Definitions:

Federal Medicare

A U.S. government health insurance program for people who are 65 years or older, and for some younger people with disabilities.

Managed Care Program

A healthcare delivery system aimed at managing cost, quality, and utilization of services by providing comprehensive care through a network of providers.

Diagnosis-Related Group (DRG)

A system to classify hospital cases into groups for the purposes of payment and evaluation.

Medicare

A federal government program in the United States that provides health insurance to people over 65 and to certain younger people with disabilities.