Which of the Following Is Correct

question 177

Multiple Choice

Which of the following is correct?

• A) In perfect competition, most firms in an industry are large.
• B) In monopolistic competition, there are fewer sellers than in perfect competition but still many buyers.
• C) All things considered, perfect competition is the ideal situation.
• D) In order for an oligopoly to exist, there must not be more than three sellers.
• E) In a monopoly, the firm that is the only supplier does not have to worry about how much consumer demand will fall as it raises its prices.

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Definitions:

Income

Income is the money that an individual or business receives in exchange for providing labor, producing goods, or investing capital.

Price

Price is the amount of money expected, required, or given in payment for something, often determined by the forces of supply and demand in the market.

Apples

A type of fruit that is typically round, with red, green, or yellow skin, and sweet to tangy flesh.

Bananas

An edible, lengthy fruit generated by several species of substantial, flowering herb plants in the Musa genus.