In a Market That Lacks Sufficient Competition

question 157

Multiple Choice

In a market that lacks sufficient competition,

• A) output will generally be less than the output that is ideal from the standpoint of economic efficiency.
• B) output will generally be greater than the output that is ideal from the standpoint of economic efficiency.
• C) price will generally be less than the price that would result if the market was competitive.
• D) profit rates will generally be so low that government subsidies will be necessary to ensure that the firms remain in business.

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Definitions:

Hedonic Treadmill

A psychological phenomenon that suggests people tend to return to a relatively stable level of happiness despite major positive or negative events or life changes.

Minor Physical Injuries

Bodily harm that is not severe or life-threatening, often including cuts, bruises, or minor burns.

Pre-Injury Level

A state of physical or mental ability or health before an individual suffered an injury, used as a baseline for recovery or treatment goals.

Remains The Same

To continue to be in an unchanged state or condition over a period of time.