Because of the Number of Firms in Monopolistic Competition

question 149

Multiple Choice

Because of the number of firms in monopolistic competition,

• A) each firm has a large market share.
• B) it is possible for the firms to collude.
• C) no one firm can dominate the market.
• D) one firm has the ability to dictate market conditions.
• E) each firm must carefully monitor what its competitors do.

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Definitions:

Med-Arb

A type of dispute resolution process in which both parties agree to start out in mediation and, if unsuccessful, to move on to arbitration.

Uniform Mediation Act

A legislative framework designed to promote consistency and establish procedures for the mediation process in legal disputes.

Federal Arbitration Act

A U.S. law that provides for the enforcement of arbitration agreements and allows for the use of arbitration in resolving disputes instead of going to court.

Arbitration Agreement

A contract specifying that disputes will be resolved through arbitration rather than court litigation.