Even When There Are Only a Few Firms in a Market

question 100

Multiple Choice

Even when there are only a few firms in a market, the market can still be competitive as long as barriers to entry are low. Markets of this type are called

• A) monopolistic markets.
• B) price-taker markets.
• C) contestable markets.
• D) convertible markets.

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Definitions:

Electricity

Form of energy resulting from the existence of charged particles, used for power and lighting.

Stove

A heating appliance used for cooking and heating, operating with various fuel sources like gas, electricity, or wood.

Depreciation

The systematic allocation of a tangible asset's cost over its useful life, reflecting wear and use over time.

Allocate

The process of assigning costs or resources to different departments, projects, or activities based on specific criteria.