In a Lorenz Curve, Perfect Income Equality Is Represented by

question 252

Multiple Choice

In a Lorenz curve, perfect income equality is represented by

• A) a vertical line.
• B) a horizontal line.
• C) a rectangular hyperbola.
• D) a 45-degree line originating from the origin.

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Definitions:

Oligopoly

A market situation in which a small number of sellers constitutes the entire industry. It is competition among the few.

Cartel Arrangements

Agreements among competing firms to control prices or exclude entry of a new competitor in the market, often resulting in anticompetitive behavior.

Oligopolists

Firms or individuals that control the market for a particular good or service in an oligopoly, where a small number of entities dominate.