Some Markets Have Many Buyers and Sellers but Fall into the Category

question 118

Multiple Choice

Some markets have many buyers and sellers but fall into the category of monopolistic competition rather than perfect competition.The most common reason for this is

• A)there are high barriers to entering these markets.
• B)firms in these markets sell identical products.
• C)firms in these markets make high profits.
• D)firms in these markets do not sell identical products.

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Definitions:

Guaranteed Interest Rates

Interest rates promised to remain constant over a defined period, often associated with savings instruments like fixed deposits.

Maturity Value

The amount payable to an investor at the end of a fixed term investment.

Financial Planning

The process of creating strategies for managing finances to achieve personal financial goals.

Inflation Rate

The velocity at which there is a general increase in the cost of goods and services, thereby reducing the effective purchasing capability.