Based on Bresnahan and Reiss' Study of the Relationship Between

question 13

Multiple Choice

Based on Bresnahan and Reiss' study of the relationship between concentration and prices,how many firms did they determine generally need to be in a market for price competition to be as intense as it would likely get?

• A)1
• B)2
• C)3
• D)4
• E)5

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Definitions:

Production Possibilities Curve

A curve depicting all maximum output possibilities for two goods, given a set of inputs consisting of resources and other factors.

Slope Southeast

Directionally indicates a downward and to the right trajectory on a graph, often used in economics to describe certain types of curves like the demand curve.

Production Possibilities

A concept in economics that describes the maximum output combinations of goods or services an economy can achieve when all resources are fully and efficiently utilized.

Capital Goods

Long-lasting goods that are used in the production of other goods or services, such as machinery, buildings, and equipment.