In Which Market Structure Do Firms Exist in Very Large

question 152

Multiple Choice

In which market structure do firms exist in very large numbers,each firm produces an identical product,and there is freedom of entry and exit?

• A) monopoly
• B) oligopoly
• C) only perfect competition
• D) only monopolistic competition
• E) both perfect competition and monopolistic competition

---

Definitions:

Creating Subgoals

The strategy of breaking down a goal into smaller, more manageable tasks or objectives that are easier to achieve step by step.

Using Algorithms

The practice of applying a step-by-step procedure or formula for solving problems or performing tasks.

Confirmation Bias

The tendency to search for, interpret, favor, and recall information in a way that confirms one's preexisting beliefs or hypotheses.

Representativeness Heuristic

A cognitive bias in decision making, where the likelihood of an event is estimated based on how similar it is to the typical case.