A Very Large Number of Small Sellers Who Sell Identical

question 199

Multiple Choice

A very large number of small sellers who sell identical products imply

• A)a multitude of vastly different selling prices.
• B)a downward sloping demand curve for each seller's product.
• C)the inability of one seller to influence the price.
• D)chaos in the market.

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Definitions:

Underemployment

describes a situation where workers are employed in capacities below their skill level or work fewer hours than they would prefer.

Opportunity Cost

The cost of what is forgone in order to pursue a certain action or decision.

Diseconomies of Scale

The phenomenon where production costs per unit increase as a firm's or industry's output expands.

Factor Suitability

A principle in economics that factors of production such as land, labor, and capital are more productive when appropriately matched with their specific uses or industries.