If Competitive Market Circumstances Are Such That There Are a Lot

question 310

Multiple Choice

If competitive market circumstances are such that there are a lot of sellers who use some price competition,some product differentiation,and the purpose of advertising is to differentiate the firm's products from competitors,then _____ must exist in the industry.

• A)a pure monopoly
• B)an oligopoly
• C)monopolistic competition
• D)pure competition

---

Definitions:

Fall in Income

A decrease in the amount of money received, typically referring to personal income or national income.

Negative Income Elasticity

A situation where demand for a good decreases as consumer income rises, often associated with inferior goods.

Bargain Brand Noodles

Low-cost noodle brands that offer savings compared to mainstream or premium brands without compromising much on quality.

Responsiveness

The ability of a system or organization to react quickly and positively to changes or requests.