An Industry Comprised of a Small Number of Firms,each of Which

question 85

Multiple Choice

An industry comprised of a small number of firms,each of which considers the potential reactions of its rivals in making price-output decisions,is called:

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

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Definitions:

Marginal Utility

The additional satisfaction or benefit (utility) that a consumer derives from purchasing one more unit of a good or service.

Marginal Utility

The additional satisfaction or utility received from consuming one more unit of a good or service.

Demand Schedule

A demand schedule is a table that lists the quantity of a good that consumers are willing to purchase at various prices.

Total Utility

The overall satisfaction or benefit a consumer receives from consuming a certain quantity of a good or service.