There Is a Large Capital Requirement Needed to Set Up

question 96

Multiple Choice

There is a large capital requirement needed to set up a tire manufacturing operation. What type of market structure do tire manufacturers operate in?

• A) perfect competition
• B) oligopoly
• C) imperfect competition
• D) monopolistic competition

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Definitions:

Marginal Revenue Product Schedule

A table or graph that shows the additional revenue generated by employing one more unit of a resource, holding all other factors constant.

Resource Demand Schedule

A table or graph showing the quantity of a resource that firms are willing and able to hire at different wages or prices.

Firm

An organization that produces and sells goods or services in order to make a profit.

Derived Demand

Derived demand refers to the demand for a good or service that arises from the demand for another good or service it produces or contributes to.