The Correct Ranking of the Four Basic Market Structures from Low

question 76

Multiple Choice

The correct ranking of the four basic market structures from low HHI (Herfindahl-Hirschman Index) to high HHI is

• A)monopolistic competition,perfect competition,oligopoly,monopoly.
• B)perfect competition,oligopoly,monopolistic competition,monopoly.
• C)monopoly,oligopoly,monopolistic competition,perfect competition.
• D)perfect competition,monopolistic competition,oligopoly,monopoly.
• E)monopoly,monopolistic competition,oligopoly,perfect competition.

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Definitions:

Shortage

A situation where the demand for a product or service exceeds its supply in a market.

Quantity Supplied

The amount of a good or service that producers are willing to sell at a given price over a specific period.

Inventories

Quantities of goods or materials on hand or in the process of being produced for sale.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that producers are willing to supply.