In Which Market Structure Does One Firm Sell a Good

question 31

Multiple Choice

In which market structure does one firm sell a good or service with no close substitutes and there is a barrier blocking the entry of new firms?

• A) only monopoly
• B) only oligopoly
• C) perfect competition
• D) monopolistic competition
• E) either monopoly or oligopoly

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Definitions:

Relevant Range

The range of activity within which assumptions about variable and fixed cost behavior are valid.

Activity Level

The volume of production or the degree of activity in a business operation, which can affect variable costs.

Earn Income

The process of receiving payment through work, investments, or business operations.

Unit Variable

A measurement that reflects how variable costs change per unit of production or activity level.