According to Dow Theory,a Major Market

question 55

Multiple Choice

According to Dow Theory,a major market

• A) Advance has few price fluctuations indicate a new upward trend.
• B) Advance does not go straight up, because some investors will take profits.
• C) Decline is easier to predict than an advance.
• D) Decline typically has a higher level of volume than a major market advance.
• E) Both a and d.

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Definitions:

Differentiated Product

A product that is distinct from other similar products based on qualities like design, quality, or features, often achieved through branding and marketing.

Barriers

In economic terms, barriers typically refer to obstacles that impede the flow of goods, services, capital, or labor across borders, such as tariffs, quotas, or regulations.

Monopolistic Competitor

A firm that operates in a market structure characterized by many competitors selling differentiated products.

Perfect Competitor

A firm in a market structure where it takes the prevailing market price as given and decides its output level without being able to influence the market price.