In an Industry with a Large Number of Firms

question 164

Multiple Choice

In an industry with a large number of firms,

• A) each firm will produce a large quantity, relative to market demand.
• B) one firm will dominate the market.
• C) collusion is impossible.
• D) competition is eliminated.
• E) barriers to exit must exist.

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Definitions:

Amphibians

A class of cold-blooded vertebrates that includes frogs, toads, salamanders, and newts, which typically have a life cycle that includes both aquatic (larval) and terrestrial (adult) stages.

Birds

Warm-blooded vertebrates that are characterized by feathers, beaks, and laying hard-shelled eggs, and they have a high metabolic rate and a lightweight skeletal system.

Monotremes

A group of egg-laying mammals that includes the platypus and echidnas.

Marsupials

Mammals that carry and nourish their newborns in an external pouch, including species such as kangaroos, koalas, and opossums.