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.

---

Definitions:

S Corporation

is a type of corporation in the United States that elects to be taxed under Subchapter S of Chapter 1 of the Internal Revenue Code, allowing income to be passed through to shareholders and taxed at individual rates.

Federal Income Tax

A charge imposed by the federal government of the United States on the yearly income of entities such as individuals, corporations, trusts, and various legal bodies.

Corporation

A legal entity recognized by law, created by individuals or shareholders, with rights and liabilities distinct from those of its owners.

Attract Capital

Strategies or actions taken by businesses to draw in investment funds from outside sources.