The Market Model with the Largest Number of Firms Is

question 114

Multiple Choice

The market model with the largest number of firms is:

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

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Definitions:

Externalities

Financial outcomes or repercussions that impact third parties who are not directly involved; these can be positive or negative.

Invisible Hand

A term coined by Adam Smith to describe the self-regulating nature of the marketplace in adjusting supply and demand autonomously.

Marketplace

A physical or digital venue where buyers and sellers come together to exchange goods, services, or information.

Marginal Buyer

The consumer who might leave the market if the price was any higher, indicating their participation is sensitive to price changes.