Some Markets Have Many Buyers and Sellers but Fall into the Category

question 118

Multiple Choice

Some markets have many buyers and sellers but fall into the category of monopolistic competition rather than perfect competition.The most common reason for this is

• A)there are high barriers to entering these markets.
• B)firms in these markets sell identical products.
• C)firms in these markets make high profits.
• D)firms in these markets do not sell identical products.

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Definitions:

Usury Laws

Regulations that impose a maximum interest rate that can be charged on loans to prevent excessive and unfair interest rates.

Interest

The cost of borrowing money, typically expressed as a percentage of the amount borrowed, or the income earned on deposited funds.

Rent

A periodic payment made by a tenant to a landlord for the use of land, premises, or other property.

Surplus

An excess of income or assets over expenditure in a given period, often referring to a government's budget.