There Are Two Types of Markets in Which Firms Face

question 346

Multiple Choice

There are two types of markets in which firms face some competition yet are still able to have some control over the prices of their products. Those two types of market are

• A)monopolistic competition and oligopoly.
• B)duopoly and triopoly.
• C)perfect competition and monopolistic competition.
• D)duopoly and imperfect competition.

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Definitions:

Procedural Law

The body of law that outlines the processes and methods by which legal rights and duties are enforced.

Behavioral Economics

A field of economics that studies the effects of psychological, social, cognitive, and emotional factors on economic decisions.

Utility Maximization

The economic principle that consumers choose to allocate their resources in a way that maximizes their satisfaction or utility.

Economic Agents

Individuals, households, firms, and governments that make decisions about the allocation of resources and interact in markets.