In a Given National Market, Only Five Firms Make and Distribute

question 143

Multiple Choice

In a given national market, only five firms make and distribute little red wagons. This illustrates which degree of competition?

• A) Monopoly
• B) Selective competition
• C) Oligopoly
• D) Monopolistic competition
• E) Perfect competition

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Definitions:

Free Market

An economic system where prices for goods and services are determined by the open market and by consumers, with minimal government intervention.

Chinese Yuan

The official currency of the People's Republic of China, used as the medium of exchange in mainland China.

Canadian Dollar

The official currency of Canada, symbolized as CAD and often represented by the dollar sign $.

Political Risk

The possibility of expropriation and the unanticipated restriction of cash flows to the parent by a foreign government.