If Markets Are Not Competitive

question 87

Multiple Choice

If markets are not competitive:

• A) prices will still send the correct signal in a free market.
• B) the invisible hand does not work perfectly.
• C) there will be an ideal balance between industries.
• D) there will be significant externalities.

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Definitions:

Quantitative

Relating to, measuring, or measured by the quantity of something rather than its quality, often involving statistical, mathematical, or numerical data analysis.

Measurement

Measurement is the process or the result of quantifying the characteristics of phenomena or objects, assigning numbers or symbols according to rules.

Ordinal Scale

A scale of measurement where the attributes being measured are ordered in terms of magnitude or importance, but the intervals between attributes are not necessarily uniform or known.

Rating Scale

A set of categories designed to elicit information about a quantitative or qualitative attribute.