In Which of the Following Industry Models Are the Individual

question 7

Multiple Choice

In which of the following industry models are the individual firms not price takers?

• A) oligopoly
• B) monopolistic competition
• C) perfect competition
• D) (a) and (b) above only

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Definitions:

OPEC

The Organization of Petroleum Exporting Countries, an intergovernmental organization of oil-producing countries that aims to manage the supply of oil to stabilize prices and ensure steady earnings.

Price Ceiling

A government-imposed maximum price that can be charged for a good or service, intended to protect consumers from high prices.

Market Demand

The aggregate of a good or service that each consumer in a market is eager and qualified to purchase at differing prices.

Binding

A situation where a restriction, such as a price ceiling or floor, actually affects the market outcome because it is set above or below the equilibrium price.