Under Which of the Following Market Structures Would Consumers Likely

question 463

Multiple Choice

Under which of the following market structures would consumers likely pay the highest price for a product?

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

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Definitions:

Law of Diminishing

A principle stating that as more units of a variable input are added to fixed inputs, the additional output from each new unit of input eventually decreases.

Implicit Costs

The opportunity costs associated with a company's own resources, not directly paid for with cash but are the result of using assets instead of investing them elsewhere.

Economic Profit

The difference between total revenue and the total costs, including both explicit and implicit costs, unlike accounting profit which only considers explicit costs.

Explicit Costs

Direct financial payments made to acquire resources or services for business operations.