If the Efficient Scale of Production Only Allows Three Firms

question 65

Multiple Choice

If the efficient scale of production only allows three firms to supply a market,the market is a

• A)three-firm monopoly.
• B)cost-based oligopoly.
• C)natural oligopoly.
• D)monopolistic competition.
• E)competitive monopoly.

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Definitions:

Efficient

Achieving maximum productivity with minimum wasted effort or expense.

Adaptable

Capable of being adjusted to new conditions or environments.

Small Amounts

Minimal quantities or volumes of a substance or entity, often insufficient to have a significant impact.