Consider the Following Characteristics of a Particular Industry: - There

question 48

Multiple Choice

Consider the following characteristics of a particular industry: - there are natural barriers to entry
- market price exceeds marginal cost of production
- there is no strategic behaviour in the industry
This industry is likely to be

• A)an oligopoly.
• B)a monopoly.
• C)monopolistically competitive.
• D)perfectly competitive.
• E)one where each firm has limited market power.

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Definitions:

Interest Rate

The percentage of an amount of money charged by a lender to a borrower for the use of assets, typically expressed as an annual percentage rate.

Investment Tax Credit

A fiscal policy tool used to encourage companies to invest by providing a tax rebate on their investments.

Equilibrium

A state in a market where supply equals demand, and there is no incentive for price to change, leading to market stability.

Interest Rate

A lender's charge to a borrower, represented as a percentage of the principal amount, for the privilege of borrowing assets.