According to William Shepherd's Examination of Competitive Trends in the U.S.economy

question 132

Multiple Choice

According to William Shepherd's examination of competitive trends in the U.S.economy, a market is effectively competitive if

• A)the top four firms supply more than 60 percent of the market, have stable market shares, and cooperate with each other
• B)the top four firms supply more than 60 percent of the market, have stable market shares, and compete with each other
• C)the industry exhibits low concentration, few barriers to entry, and little or no collusion
• D)the industry exhibits low concentration and little or no collusion, despite significant barriers to entry
• E)the dominant firm has two close rivals

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Definitions:

Professional Corporation

A type of corporate entity for which many states offer incorporation options, designed for professions where the practitioners require a license, like doctors or lawyers.

Law Firm

A business entity formed by one or more lawyers to engage in the practice of law, providing legal services to clients.

Privately Owned

Properties or businesses that are owned by individuals or corporations rather than by the government or public.

Corporation

A legal entity recognized by law as separate from its owners, with rights to own assets, incur liabilities, and conduct business.