Use Your Basic Knowledge and Your Understanding of Market Structures

question 52

Multiple Choice

Use your basic knowledge and your understanding of market structures to answer this question. Which of the following companies most closely approximates a monopolistic competitor?

• A) Subway Sandwiches
• B) Pittsburgh Plate Glass
• C) Ford Motor Company
• D) Microsoft

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums, remaining constant regardless of business activity levels.

Organizational Response

Refers to how an organization reacts to external or internal events, changes in the market, or other pressures to maintain or improve its standing.

Labor Strike

A work stoppage caused by the mass refusal of employees to work, typically to protest against terms of employment.

Technology Leader

Refers to an individual or organization that possesses advanced technological capabilities and sets trends in innovation.