Which of the Following Is True

question 170

Multiple Choice

Which of the following is true?

• A) Markets with four or more firms are nearly competitive.
• B) Markets with only two firms cannot be competitive.
• C) A monopoly market can be competitive.
• D) Number of firms is not a guarantee of the competitiveness of a market.

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Definitions:

Profitable

An economic condition where revenue exceeds the costs and expenses incurred in producing goods or services.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that producers are willing to supply.

Raw Material Costs

The expenses associated with acquiring the unprocessed materials required for the production of goods or services.

Demand Curve

A chart displaying how consumer demand for a product varies based on its price.