"Competitive Price-Taker Markets" and "Purely Competitive Markets" Are

question 92

Multiple Choice

"Competitive price-taker markets" and "purely competitive markets" are

• A) similar, but competition is stronger in the latter.
• B) similar, but products are differentiated in the former.
• C) merely alternative names for the same concept.
• D) terms used to designate markets in which the firms confront a downward sloping demand curve.

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Definitions:

Liquidated Damages Clause

A provision in a contract that pre-determines the amount of damages to be paid if one party breaches the agreement.

Enforceable

A term that describes a contract or agreement that can be legally upheld and compelled by the court system.

Specific Performance

A legal remedy where a court orders a party to perform a specific act, usually indicated in a contract, as opposed to awarding damages.

Consequential Damages

Losses that do not flow directly from an act but only from some of the consequences or results of such act.