If Competitive Market Circumstances Are Such That There Is Some

question 100

Multiple Choice

If competitive market circumstances are such that there is some leader-follower price competition,some product differentiation,and the purpose of advertising is to inform,but avoid price competition,then _____ must exist in the industry.

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

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Definitions:

Strict Rules

Regulations or guidelines that are rigorously enforced and must be followed precisely.

Collateral Promise

A secondary promise to answer for the debt or duty of another person in case that person fails to fulfill the obligation.

Guarantor

An individual or entity that agrees to be responsible for another's debt or performance under a contract if the original party fails to comply.

Statute of Frauds

A legal doctrine that requires certain types of contracts to be in writing and signed by all parties to be enforceable.