Firm Size Alone Is Not the Same as Market Power

question 98

Multiple Choice

Firm size alone is not the same as market power, as illustrated by

• A)a large automaker raising its prices without concern about competition
• B)a movie theater in an isolated community facing stiff competition
• C)wheat farmers selling their commodity product to farm cooperatives
• D)the only newspaper in a metropolitan area facing competition for advertising sales from TV, radio, and the Internet
• E)None of the answers is correct

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