-Refer to Table 3-5

question 49

Multiple Choice

-Refer to Table 3-5. If Canada and Japan trade based on the principle of comparative advantage, what could Japan gain from exporting a car?

Definitions:

Purely Competitive

A market structure characterized by a large number of small firms, a homogeneous product, and free entry and exit into the market.

Oligopoly Market Structure

A market form in which a market or industry is dominated by a small number of sellers (oligopolists).

Single Firm

A business entity that is the sole provider of a good or service in a particular market, potentially exhibiting monopoly power.

Large Number of Firms

A characteristic of competitive markets where many firms are present, each having a small share of the market and influencing the price minimally.