Which of the Following Can Be Compatible with Imperfect Competition

question 54

Multiple Choice

Which of the following can be compatible with imperfect competition?

• A)Monopoly power in a given market.
• B)Excessive advertising.
• C)An ability to set price or output in a given market.
• D)An ability for one firm to service all of the demand in a given market.
• E)All of the above.

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Definitions:

Long-run Total Costs

The total costs incurred by a firm when all factors of production are variable, and the firm can change its scale of operation.

Opportunity Cost

The expense incurred by not choosing the second-best option available during the decision-making process.

Bank Loan

A sum of money borrowed from a bank that must be repaid with interest over a set period.

Diminishing Marginal Product

The principle that as the quantity of a factor of production increases, holding all other inputs constant, the additional output generated by one more unit of that factor will eventually decrease.