A Necessary Condition for Market Power to Exist for a Particular

question 14

Multiple Choice

A necessary condition for market power to exist for a particular company in a market is that:

• A) information must be understood by both buyers and sellers.
• B) effective barriers to entry must exist.
• C) the number of firms is over 150.
• D) consumers perceive all products as homogeneous.

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Definitions:

Cellulose

An organic compound with the formula (C6H10O5)n, a polysaccharide consisting of a linear chain of several hundred to many thousands of β(1→4) linked D-glucose units, a primary structural component of plant cell walls.

Digestive Tracts

The series of hollow organs joined in a long, twisting tube from the mouth to the anus, where food is broken down and nutrients are absorbed.

Pulp Cavity

The central part of a tooth containing the nerve and blood vessels, vital for the tooth's nutrition and sensitivity.

Tooth Decay

A condition where the structure of the tooth is damaged due to bacterial activity, leading to cavities or caries.