If There Is No Scarcity

question 18

Multiple Choice

If there is no scarcity,

• A) the opportunity cost of an action would be greater than its sunk cost.
• B) an action would have zero opportunity cost.
• C) choices are no longer rational.
• D) marginal cost of an action is greater than its marginal benefit.
• E) all marginal benefits would equal zero.

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Definitions:

Monopolistic Competition

A market structure in which many firms sell products that are similar but not identical, allowing for competition based on quality, price, and branding.

Goods Offered

The products made available to consumers in the market, including tangible items that satisfy needs or wants.

High Start-Up Costs

The significant initial investment required to establish a new business, which can include expenses related to research and development, manufacturing, marketing, and administrative infrastructure.

Few Competitors

A market condition where only a small number of firms operate, often leading to higher prices and reduced competition.