Which of the Following Is Correct

question 188

Multiple Choice

Which of the following is correct?

• A) Monopoly has a four-firm concentration ratio of 100.
• B) Perfect competition has a four-firm concentration ratio near zero.
• C) Monopolistic competition has a four-firm concentration ratio of more than 40.
• D) Both answers A and B are correct.
• E) Both answers A and C are correct.

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Definitions:

Factory

A building or complex of buildings where goods are manufactured or assembled chiefly by machine.

Foreign Investment

The inflow of capital from external sources into a country to purchase assets, buy stocks, or fund projects, enhancing economic growth.

Interest Rates

The percentage charged or paid for the use of money, typically by a bank or financial institution on loans or savings.

Economy

The collective system of production, consumption, and trade of goods and services within a particular area or country.