If in a Given Market of More Than One Producer

question 68

Multiple Choice

If in a given market of more than one producer, there were to exist for a long interval of time a positive gap between price and average cost (P > AC) , this would suggest that

• A)there are many sellers in the industry.
• B)there exists an oligopoly or cartel in the industry.
• C)this is a contestable market.
• D)the firm cannot be a monopolistic competitor.

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Definitions:

Chemical Attractants

Substances that cause organisms to move toward them due to a chemical gradient, often used in cell signaling and navigation.

Haplodiploidy

A sex determination system in some insects where males develop from unfertilized eggs and are haploid, while females develop from fertilized eggs and are diploid.

Altruistic Behavior

Actions by an individual that benefit others at its own expense, often observed in the social behavior of animals.

Chemical Communication

The use of chemical signals for information exchange between organisms, critical for processes like pollination and mating.