In Which Market Model Are the Conditions of Entry into the Market

question 17

Multiple Choice

In which market model are the conditions of entry into the market easiest?

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

---

Definitions:

Stock Options

Contracts that give the holder the right, but not the obligation, to buy or sell a stock at a set price within a specified period.

GAAP

Generally Accepted Accounting Principles; a collection of commonly-followed accounting rules and standards for financial reporting.

Grant Date

In the context of stock options, the grant date is the date on which an employee is given the right to exercise their options at a set price.

Common Stock

represents units of ownership in a corporation, giving shareholders voting rights and a share in the company’s profits through dividends.