Which of the Following Would Be Least Likely to Have

question 52

Multiple Choice

Which of the following would be least likely to have market power?

• A) An industry in which there are a small number of producers and low entry barriers.
• B) An industry in which there are a small number of producers and significant entry barriers.
• C) An industry consisting of a single firm that faces little competition from imports.
• D) An industry with a small number of firms that produce differentiated products.

---

Definitions:

Entrepreneur's Talent

The unique set of skills, creativity, and determination that an entrepreneur brings to identifying opportunities and building a business.

Implicit Costs

Implicit costs refer to the opportunity costs of using resources that a company already owns, without any direct payment, for its own production purposes.

Explicit Costs

Direct, out-of-pocket payments for wages, rent, materials, and other inputs required for the production of goods or services.

Total Cost

The total amount of money spent on creating goods or services, encompassing both constant and fluctuating expenses.