Which of the Following Is a Source of Market Power

question 32

Multiple Choice

Which of the following is a source of market power in the United States?

• A) low barriers to entry.
• B) competition from foreign firms.
• C) technical conditions.
• D) the existence of a large number of substitute goods.

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Definitions:

Costs Of Production

The aggregate cost of producing a product or delivering a service, encompassing the price of raw materials, workforce, and indirect expenses.

Industry

A group of firms producing similar products or services that serve the same market.

Profits

The financial gain achieved when the revenue from business activities exceeds the costs and expenses involved in operating.

Market Economy

An economic system where the prices of goods and services are determined in a free price system, set by supply and demand.