Higher Prices

question 3

Multiple Choice

Higher prices

• A)are always against the public interest.
• B)may sometimes serve the public interest.
• C)should never be allowed.
• D)occur automatically for abundant goods.

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Definitions:

Monopolistic Competition

A market structure where many firms sell products that are similar but not identical, allowing for some market power and differentiated competition.

Monopoly

A situation where a single company or group exclusively controls the supply of a particular product or service, limiting competition.

Soft Drinks

Non-alcoholic beverages, typically carbonated, which do not contain alcohol but may include caffeine and added sugar or sweeteners.

Oligopoly

A market structure dominated by a small number of large firms, leading to strategic interactions in setting prices and output.