In a Competitive Market,maximum Efficiency Is Achieved Because Of

question 128

Multiple Choice

In a competitive market,maximum efficiency is achieved because of:

• A) Competitive pressure on prices.
• B) Differentiated products.
• C) High barriers to entry.
• D) Significant market power.

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Definitions:

Two-part Tariff

A pricing strategy that consists of a fixed fee plus a variable charge for actual consumption.

Residential Telephone Service

A service provided to homes that allows residents to make and receive telephone calls.

Monthly Fee

A recurring charge that consumers or businesses must pay for access to a product or service, typically charged on a monthly basis.

Intertemporal Price Discrimination

A pricing strategy where a seller varies the price of a good or service over time to maximize profits from different consumer willingness to pay.